ADX likely to face neckline resistance at 2,445


today
24/03/2009 00:00 AST  www.business24-7.ae

The Abu Dhabi Securities Exchange advanced for the fifth consecutive session yesterday, adding 13.04 points, or 0.54 per cent, to close at 2,424.80.

The index is expected to face neckline resistance at 2,445 points today, and breaking through would enable it to advance towards its next resistance level at 2,600 points. Yesterdays rally coincided with increased trade value which more than tripled compared with the previous session. A total of 149 million shares changed hands at a value of Dh246.1 million.

Real estate and energy stocks dominated the list of active players, with Aldar, Sorouh, Taqa, Dana and Aabar attracting around 75 per cent of the total turnover.

Analysts said local institutions were continuing to accumulate stocks at a slow pace, while speculators had started to take active movements during the past two sessions. They expected that active speculation would continue during the next few sessions on selected stocks.

However, most of the leading ADX stocks are approaching resistance and this could increase profit-booking movements.

Amjad Bakir, trading manager at MAC Sharaf Securities, said he expected the ADX would face neckline resistance at 2,445 points today. "We see this as a critical level for the rally in the market in the short term. At this level we expect profit-booking movements. However, if the ADX breaks through the neckline resistance it will turn bullish and can jump to its next resistance at 2,600 points."

"Leading stocks including Aldar and Sorouh witnessed strong buying yesterday and look very bullish. Aldar is expected to rally to Dh3 and Sorouh can target the Dh2.48 level."

Taimur Saadat, senior analyst at Arab Capital Markets, said the ADX was heading towards forming a bottom in the medium term.

"Local institutions are buying stocks in the market and this is giving a very strong signal for a medium-term bottom. The ADX is projected to rally during the next two months before it retreats again."

Saadat predicted that commodity-based companies, especially energy ones, would witness a very strong rally during the second half of 2009 due to renewed inflationary pressure.

"We expect inflation in the country will reverse its trend and go up starting from the third quarter of the year. Commodity and energy companies will rally due to inflationary pressures very soon."

He expected that heavyweight Etisalat would continue its upward trend to Dh13.80.

"Aabar looks very bullish and is expected to cross Dh2 soon. And Sharjah Cement is expected to reverse its trend and go up to Dh2."

Strong Aabar outing
Aabar opened the session with a gap up, adding more than five per cent to reach Dh1.87 and before retreating gradually to end the session at Dh1.79.

The stock attracted strong buying throughout the session after the company said it had bought a stake of 9.1 per cent in Germanys Daimler for €1.95 billion (Dh9.75bn). Daimler increased its share capital by around 10 per cent with exclusion of subscription rights for existing shareholders.

Market News
2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | News Archive

JAN | FEB | MAR | APR
Most Viewed Companies
Ticker Price Volume
ADIB 6.7 1,840,528
SECO 15.63 6,070,104
DARALARKAN 12.11 21,374,640
GFH 0.21
DIC 3.89 3,103,145
NBAD 14.5 945,824
MASQ 120 188,000
Recent News

Gold Extends Decline on Prospects for Further Tapering by Fed
Gold retreated for a second day, extending the biggest drop in three weeks, on prospects for further cuts to the Federal Reserve’s stimulus program as the U.S economy shows signs of recovery. Silver

FGB Sets Up $1 Billion Singapore Program to Fund Asian Expansion
First Gulf Bank PJSC (FGB), the United Arab Emirates’ third-biggest lender, said its Singapore branch set up a negotiable certificates of deposit program for as much as $1 billion to expand in Asia P

Oversubscription seen in Omantel’s public offer
Oman Telecommunication Company's (Omantel) OMR96-million share offer to Omani individuals might have received good response, market sources said.

Although a final subscription figure is ye

Banks, property developers lift Qatar bourse
Qatar’s bourse rallied yesterday after a two-day pull-back. The index rose 1.5 percent with property names leading the turnover. Shares in United Development added 2.4 percent and Barwa Real Estate g

Qatar Steel hosts traders’ meet
The Qatar Steel has hosted its 11th Traders’ Annual Gathering. The official ceremony was held at The Ritz Carlton- Doha, in honour of Qatar Steel’s traders.

The ceremony was attended by a

GulfBase GCC Index
Search By
  • Company Symbol
  • Company Name
  • Mutual Fund Name
  • News Content
Send this page to a friend

Poll

Are you satisfied with your full-service broker?