Abu Dhabi index falls over 6-week low as banks drag

The fall was led by National Bank of Abu Dhabi First Gulf Bank, and Etisalat

Published: 17:28 February 2, 2017

Siddesh Suresh Mayenkar, Senior Reporter

Dubai:

Abu Dhabi index fell the most in the region led by leading banks, etisalat in the backdrop of weak international leads.

The Abu Dhabi Securities Exchange General index closed 1.77 per cent lower at 4,446.21, after hitting a low of 4,441.37, a level last seen on December 22.

“There was a bit of profit-taking. Some people were worried about international markets. Traders are worried about international sentiment and policies from Trump,” Ahmed Waheed, Vice President — Institutional Desk at Menacorp said.

National Bank of Abu Dhabi, First Gulf Bank, Etisalat weighed on the index.

NBAD closed 1.32 per cent lower at Dh9.75, while Fiest Gulf Bank closed 3.08 per cent lower at Dh12.60. Sharjah Islamic Bank closed 4.40 per cent lower at Dh1.52. Abu Dhabi Commercial Bank closed 1 per cent lower at Dh6.91.

Out of a total of 30 stocks traded on the bourse, shares of 13 firms fell, while other 8 rose. The rest remained steady.

Dubai index also fell. The Dubai Financial Market General index closed 0.82 per cent higher at 3,623.75.

“The market witnessed stock specific move, and breached 3,640 support level, and may this trigger further selling pressure towards 50 day moving average at 3,570/3,500,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities. Salama Bank closed 10 per cent higher at Dh1.21.

“The biggest disappointment was Emaar today, which got hammered,” said Menacorp’s Waheed, adding “we saw Drake and Scull dominating among small stocks in terms of volumes.”

Emaar Properties closed 2.42 per cent lower at Dh7.25, while Gulf Finance House closed more than 1 per cent higher at Dh2.80.

Going into next week, traders would eye for fourth quarter results from Emaar Properties, and policies from the new Trump administration in the US.

“Right now it is very hard predict. As long there is Twitter and Trump, we will be in a bit of a mess,” said Waheed.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.03 per cent lower at 7,098.64. The Qatar exchange index closed 0.24 per cent lower at 10,570.41.