22/06/2010 00:00 AST
The Abu Dhabi Securities Exchange (ADX) saw another session of positive buying yesterday following fresh purchase orders, lifting several stocks across all segments but consumer sector.
Realty, energy and banking stocks supported the index the most, while the healthcare, telecom and industrial segments closed flat. Rapco, RAK Ceramic, Methaq, Union National Bank and Qatar Telecom stocks were the major gainers of the session, while NCTH, Sudan Telecom, QCEM, RAK Cement and Arkan were the major losers on the bourse. The ADX general index rose for the second successive session, adding 1.02 per cent to close at 2561.98 points, a net gain of 25.98 from its close of 2536 the day before.
"The index was hovering above 2550 and looks headed towards 2600, a key psychological level for the market. If it breaks this level in the next two sessions, the market will be in a bullish mode. Positive international news may have a better impact on market sentiment," Wadah Al Taha, a senior financial analyst, told Emirates Business.
Among consumer stocks, National for Tourism and Hotels fell 10 per cent to end at Dh7.65. This pulled the consumer index lower despite a rise in Rapco and Agthia stocks. The rise in the Chinese currency has been the major booster of confidence in renewing the recovery prospects of the global economy. It has also brought cheer to the local markets.
"Intraday today, if the ADX index remains above the pivot levels of 2554, it can test the 2583-point resistance levels. A break below the pivot can bring profit taking until the lower support levels of 2525," said Shiv Prakash, an Equity Investment Analyst (Technical) at MAC Capital Advisors.
Realty stock Aldar rose 3.19 per cent to end at Dh3.23, while RAK Properties and Sorouh shares added more than two per cent each to close at Dh0.38 and Dh2.01 respectively. With Dh110.76 million in trading value, the Aldar stock alone accounted for 56.28 per cent of the total turnover on the bourse "The major stock was Aldar, representing almost 60 per cent of total trading. One stock is playing a significant role in influencing the trading pattern. With strong fundamentals, major stocks will propel the index upwards," said Al Taha.
The ADX recorded a trading value of Dh196.78m yesterday, a 30.56 per cent increase over Sunday's Dh150.71m.
"The Abu Dhabi index traded bullishly and recovered, crossing the important resistances of 14-day SMA, indicating bullishness. The market is expected to continue its bounce in the next trading session as well. The MACD indicator, which gave the positive crossover in the previous session, proved bullish and brought corrective bounce in the index," said Shiv Prakash.
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