News Column

ADX climbs 1.95%, DFM rises 0.28%

May 22, 2014

Sarah Diaa Staff Reporter

Abu Dhabi: The Abu Dhabi Securities Exchange (ADX) index climbed 1.95 per cent on Thursday to end the day at 4,925.71, while the Dubai Financial Market (DFM) general index rose 0.28 per cent to close at 4,864.03.

Dubai powerhouses Arabtec and Union Properties declined 3.27 per cent and 3.11 per cent respectively. Meanwhile, Emaar rose 1.69 per cent to reach Dh9.64, and DP World gained 3.02 per cent to hit a share price of Dh20.14, marking the highest price in the market.

On DFM, 72 per cent of trade went to the real estate sectors, while the banking sector occupied 13 per cent.

Analyst Osama Al Ashry described the day's trade on DFM as "weak", and attributed that to the steep drop of four per cent on Wednesday. "Last week saw an overall of 13 per cent drop in DFM, so it's only natural that there's an increase in the index today. Plus, people rarely buy stocks before a weekend, especially if it's a three-day weekend," said Al Ashry, a member of UK organisation, Society of Technical Analysts.

As for projections for DFM, he said the index has a resistance of 5,080, and if broken, the index can reach 5,780 over the next month and a half.

In Abu Dhabi, the index climbed on the back of the banking sector, which accounted for 38 per cent of the value of trade.

First Gulf Bank rose 1.05 per cent in value to reach a share price of Dh17.25.

In terms of volume of trade, Gulf Pharmaceutical Industries marked the greatest change with a 6.36 per cent drop. Eshraq Properties also declined 3.68 per cent, Dana Gas went down 1.20 per cent, and Aldar Properties dropped 1.06 per cent.

Discussing market sentiment, Al Ashry said investors who own stocks belonging to the main powerhouses feel a sense of risk due to the aggressive nature of trade in the market.

"Investors and traders need to understand that the MSCI upgrade has changed the nature of trade on DFM and ADX. Stock markets in other countries handle larger trade volumes, and values," he said.

Despite so, Al Ashry said he was not worried about trade as long as there is liquidity in the market.

Of the 37 traded stocks on ADX, 17 declined, 13 advanced, and seven remained flat. Of the 30 stocks traded on DFM, 15 went up, 12 went down, and three remained unchanged.

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Source: Gulf News (United Arab Emirates)