Insurance House
IH
2.13%
0.96
0.02
IH
ADA
ADAVIATION
-0.16%
6.24
-0.01
ADAVIATION
BILDCO
BILDCO
-10.00%
0.72
-0.08
BILDCO
Eshraq
ESHRAQ
-0.65%
0.30
-0.00
ESHRAQ
TNI
TNI
14.89%
0.52
0.07
TNI
Agthia
AGTHIA
-0.41%
7.20
-0.03
AGTHIA
TAQA
TAQA
1.14%
2.67
0.03
TAQA
Emirates Steel Arkan
ARKAN
0.00%
1.29
0.00
ARKAN
By: Bedour Al Raie
Abu Dhabi – Mubasher Exclusive: Three stocks on the Abu Dhabi Securities Exchange (ADX) benefitted from the decision by ADX CEO Rashid Al Baloushi to temporarily halt trading for five minutes on stocks that exceed five percent in losses. At the closing of the session, three stocks saw gains and ended in the green, despite exceeding their five percent losses earlier in the session.
Analysts welcomed Al Baloushi’s decision, which followed unjustified selling on Sunday. The ADX saw the temporary halt of eight ADX stocks, three of which benefitted from the halt period, whereas the remaining five retreated further.
TAQA was the highest gainer, surging by 3.66%, followed by Agthia and Eshraq Properties, which rose by 3.28% and 1.32%, respectively. Eshraq’s share ended in the green despite dropping to AED 0.73, its lowest level since listing. Eshraq succeeded in cutting part of its loss on Monday, concurrently with the Securities and Commodities Authority (SCA) decision which did not approve the Company’s request to buy back 10% of its stocks.
Speaking to Mubasher, Trading Manager at Delma Brokerage, Wael Mahdi said that the stock that benefitted the most from the ADX’s temporary halt decision was Eshraq’s stock. This comes despite Eshraq having closed on Sunday at its lowest level since its listing; however it succeeded on Monday in restoring important support levels once more.
The stock’s positive performance was due to investors’ understanding of Al Baloushi’s decision and their belief that it is the correct one, Mahdi noted.
Turnover on the three stocks amounted to AED 141.23 million, of which Eshraq had the lion’s share by 98%. On the other hand, The National Investor (TNI), Arkan Building Materials, BILDCO, Insurance House (IH) and Abu Dhabi Aviation Co. did not benefit from the five-minute halt. The stock ended the session in the red, retreating by 10%, 9.49%, 8.64%, 8.26% and 5.06%, respectively.
The halt period is still not enough for investors to make the right decisions, particularly in the presence of market fluctuations at present, Mahdi highlighted in his statement to Mubasher, adding that there are ongoing unofficial talks to amend the law on the temporary halt of trading and cut the minimum to five percent instead of ten percent.
Meanwhile, Fadi Al Ghattis, CEO of Think Financial Services (TFS) noted that the fact that markets are taking precautionary measures will not halt the declines particularly since regional and global outlooks remain negative.
These halts are momentary to cut the intense declines that are pressuring the index, he told Mubasher, noting that the decision is a positive one.
Worth noting, the ADX general index ended Monday in the red for the third consecutive session, falling by 0.69% or 28.99 points to 4180.76 points.
UAE markets commenced Tuesday in the red, with the ADX falling 3.44% or 144.01 points (as at 10:52 am UAE time), while the DFM plunged 6.87% or 228.32 points.
Translated by: Nada Adel Sobhi
Photo Credit: Arabianeye-Reuters
Source:
Mubasher Exclusive