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 | MAY | JUN | JUL | AUG | SEP | OCT | NOV
Most Viewed Companies
Ticker Price Volume
EMAAR 10.9 15,645,811
EEC 56.2 4,606,133
EXTRA 107.98 37,553
TAWUNIYA 65.41 1,431,714
RIBL 18.72 284,383
SABIC 101.31 4,012,254
SPIMACO 41.08 87,156
Recent News

Gulf petchem production hits new high
Despite challenges, the petrochemical and chemical production in the Gulf region surged to more than 140 million metric tons (MT) during 2013, said an industry expert.

"The global sales re

Barwa Q3 net profit surges 43pc
Qatar-based Barwa Bank has registered a 43 per cent jump in its net profit for the third quarter which hit QR641 million ($176 million) compared to QR447 million ($123 million) for the same period la

Mena to develop $300bn water projects by 2022
The governments in the Middle East and North Africa (Mena) region are expected to spend an estimated $300 billion on water and desalination projects by 2022, said experts ahead of a major industry su

Opec keeps oil markets guessing on output move
Oil analysts are putting down markers on the Organisation of the Petroleum Exporting Countries' (Opec) meeting on November 27, when members will consider whether to cut output to shore up prices.

Dubai set to handle $200bn in projects
Five years after the crisis that nearly derailed Dubai’s expansion plans, financial experts believe the emirate can meet its long-term capital requirements to fund ambitious growth targets.

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

Poll

Which of the following do you think is the best long-term investment?