Abu Dhabi index drops again amid declining volumes
Published: 17:47 March 10, 2014
Dubai: Abu Dhabi shares dropped for the third straight day amid declining volumes as investors stayed away from the market. The benchmark in Dubai witnessed moderate gain.
In the capital, the ADX Securities Index closed 1.01 per cent lower to end at 4828.75. Energy and banking shares led the decline as volume fell to 105.75 million from Sunday’s 122.43 million. The value traded dipped from Dh313.56 million in the previous session to Dh261.02 million.
In Dubai, the DFM General Index was up 0.22 per cent aided by a significant jump in volume, which stood at 532.81 million shares. The turnover was Dh1.25 billion, up from Dh611.83 million.
“The Abu Dhabi Index has been trading within range since the beginning of February and has found resistance near the 5,000 point level and support between 4,700-4,820 points,” said Firas Al Zghaibi, Financial Markets Strategist at Abu Dhabi-based Menacorp.
“The 2008 high is near 5,150, so moving in a horizontal range and having a rest was expected—particularly due to the resistance being experienced. Meanwhile, the Dubai Index 2008 highs are approaching the 6,300 point, which demonstrates a 50 per cent increase as compared to today’s achieved levels.” According to Amer Khan, director of Shuaa Asset Management, “volumes have been declining for a few days with the Dubai and Abu Dhabi markets range bound. Today’s movement keeps the markets within that range thus far.”
Also, he pointed out that an investor conference in Dubai with a large number of institutional investors attending perhaps contributed to the lower than usual volume.
In Abu Dhabi, Dana Gas lost 3.57 per cent to close at Dh0.81; Aldar and Rak Properties slipped 0.63 per cent and 0.86 per cent respectively and Abu Dhabi Islamic Bank dropped 0.50 per cent to Dh7.96.
In Dubai, Arabtec shares rose 1.67 per cent to Dh4.88, a day after the construction company announced it won a $40 billion contract to build low-income houses in Egypt.