Abu Dhabi index outperforms regionally again
Published: 16:58 April 14, 2016
Dubai: The Abu Dhabi index led the regional gains again on Thursday as traders shifted their focus to index-weighted stocks from penny ones. Most of the other indices in the region also rose.
The Abu Dhabi Securities Exchange General index closed 1.79 per cent higher at 4,454.94, after gaining more than a per cent in the last session. The index had witnessed underperformance since the rebound in mid-January.
“The rally [in Abu Dhabi] has to do with banks and etisalat. In the last week, sentiment on banking results have turned for the better. The investors are now expecting that the sentiment was overdone on the negative side,” said Sanyalaksna Manibhandu, Manager of Research, National Bank of Abu Dhabi Securities. There are a number of listed banks in Abu Dhabi compared to Dubai index.
First Gulf Bank ended 2 per cent higher at Dh12.75, while Taqa was up 1.69 per cent at Dh0.60. Aldar Properties closed more than 1 per cent at Dh2.80. Out of a total of 29 firms traded on the exchange, shares of 15 firms rose, while other 10 fell.
“There has been a shift from penny stocks to bigger stocks like banks, etisalat, property companies. And this would be pattern going into next week,” Manibhandu said.
In Dubai, the general index closed 1.31 per cent higher at 3,546.96 helped by gains in Emaar Properties and Dubai Parks. Emaar Properties, which was the most active stock in trade, closed 5.8 per cent higher at Dh6.75. Dubai Parks and Resorts ended 5 per cent higher at Dh1.44.
Dubai Financial Market (DFM) shares ended 3.27 per cent to be at Dh1.44.
DFM stock is a great buy around current levels. The stock is mainly a proxy to the market rising volumes and performance, close of AED1.53 hasn’t been printed since August last year and could easily now extend to the Dh1.70 area,” Hisham Khairy, head of institutional trading at Menacorp said.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 1.04 per cent higher at 6,509.02, while Muscat Securities MSM 30 index closed 0.51 per cent higher at 5,760.48.