Banking stocks lead rally on Abu Dhabi market


19/03/2009 00:00 AST

The Abu Dhabi Securities Exchange (ADX) responded positively to the Central Banks rate cut plan in yesterdays trading, rallying to close at 2367.91 points, registering a gain of 55.97 points, or 2.42 per cent.

Some of the major stocks that led the rally were Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Bank of Sharjah, and the National Bank of Abu Dhabi (NBAD).

"The Central Banks plan to cut interest rates boosted the confidence level of investors and as a result of this, banking shares were in the limelight with buying interest seen at almost every counter. I believe most of the bad news for the local markets is over and there would be a gradual recovery in the medium-term," said Sherif Abdul Khalek, institutional trading manager at Beltone Financial Services.

Mathew Wakeman, Managing Director, cash and equity linked trading, EFG Hermes, said: "There was better than expected housing data from the US, coupled with a strength in tech stocks following increased chip orders. Both of these stoked a fire already burning from last weeks positive bank guidance."

Yesterday, of the 33 stocks traded on the ADX, 26 advanced and seven declined. Registering a significant rise in trading volume, turnover in the exchange was Dh191 million, against Dh58.89m in the previous session. "A large number of investors put their money in the ADX. Therefore, I foresee the ADX being likely to move higher when compared to the DFM. This is for the medium-term only," said Sanyalaksna Manibhandu, research head at Emaar Saudi Financial Services.

Wakeman added: "Abu Dhabi saw renewed interest today after a few weeks in the retail wilderness. Banks and real estate had a good bounce on volume – nearly three times the average for the last few weeks. Today was the last day to buy NBAD shares before it goes ex dividend, which has been set at 10 per cent stock and 30 fils cash. Banks reacted positively to comments that liquidity is improving in the system following local and federal government initiatives."

UNB and Waha witnessed continuous buying and closed higher by 8.33 per cent. Aldar and Sorouh also witnessed buying on lower support levels, registering a gain of 3.24 per cent and 3.32 per cent respectively. Both witnessed good volumes.

"The Abu Dhabi market also took the supports near the 2,275-level on daily charts and registered a good rise to give a bullish close at 2,367.91 up by 2.42 per cent," said Shiv Prakash, technical analyst at MAC Capital.

Regional markets up
All the major stock exchanges in the GCC and the wider region, except the Bahraini bourse, recorded gains yesterday.

The Saudi Arabian bourse closed higher by 0.83 per cent, Doha by 0.77 per cent, Muscat 0.42 per cent, Kuwait 0.93 per cent, and the Egyptian bourse gained 2.62 per cent yesterday on fresh buying interest over positive global cues.

Considering the present market conditions, Vodafone Qatars IPO, which is slated to hit the market on April 12, is likely to be the major mover in the GCC market. The IPO will raise QR3.38 billion (Dh3.4bn) and is the first such offering on the Doha stock market.

www.business24-7.ae
Market News
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | News Archive
Most Viewed Companies
Ticker Price Volume
SABIC 64.66 9,731,635
SAGRINSURANCE 22.45 1,597,790
RIBL 10.95 1,696,458
ALMARAI 62.72 134,837
TAWUNIYA 66.02 241,751
STC 63.62 634,474
EMAAR 5.45 11,655,565
Recent News

GULF DRILLING INTERNATIONAL RECEIVES ITS NEW LIFTBOAT “AL SAFLIYA”
Gulf International Services, the largest service group in Qatar, with interests in a broad cross-section of industries, ranging from insurance, re-insurance, fund management, onshore and offshore dri

Bahrain ‘set for industrial revolution’
Investment banker Rashad Janahi has said that Bahrain is well-positioned to transition to the fourth industrial revolution. Mr Janahi who was one of the select Bahraini participants at the World

Global equity gloom, oil prices plunge grip MSM
The gloom in global equity markets and protracted weakness in oil prices once again gripped the Muscat Securities Market last week. “Investors once again dumped shares on global and regional cues”, s

Meethaq extends home finance for Dhalia project in Al Qurum
Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, and Badr Group signed a memorandum of understanding (MoU) to facilitate attractive Meethaq home finance for Dhalia project in Al Quru

Oman emerging as key base for world’s first seafloor mining
Last month’s signing of a landmark agreement between an Australian-Canadian mining firm and a prominent Omani engineering services provider effectively positions the Sultanate as an emerging support

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

Poll

Looking ahead, what change you are more likely to make in investing in your domestic stock market?