Abu Dhabi jumps more than 1% ahead of MSCI reweighting
Published: 18:05 November 30, 2015
Dubai: Abu Dhabi index jumped more than 1 per cent on Monday as MSCI reweighting takes effect from Monday night. Qatar index fell more than 4 per cent.
The Abu Dhabi Securities Exchange General Index ended 1.53 per cent higher at 4,236.39.
“The market sentiment was dominated by the MSCI, and there wasn’t much that happened other than the MSCI names,” Sanyalaksna Manibhandu, Manager of Research, National Bank of Abu Dhabi Securities. “I don’t think anyone in the UAE today were thinking about the payroll numbers.”
Etisalat jumped 10 per cent to end at Dh16.50, while Dana Gas continued its northwards journey after the company won the court case regarding joint-venture operations in the Kurdish north of Iraq.
Aldar Properties closed more than 1.30 per cent at Dh2.34.
“Aldar Properties has completed an upwards correction after previously
breaking through the Dh2 support level which has warned towards a retest of the 52 week low at Dh1.90,” Menacorp said in a note to its clients.
“No one expect Opec to do anything on Friday, so crude prices would continue to slump, and that have a negative impact on GCC markets,” Manibhandu said.
Opec countries will meet on December 4 and it is widely expected that the suppliers group will maintain output despite a more than 50 per cent slump in prices since last year.
In Dubai, the general index closed 0.35 per cent higher at 3,204.28. In stock specific action, Dubai Islamic Bank closed 3.56 per cent higher at Dh6.40.
“We can see a consolidation taking place with mixed technical signals in Dubai Islamic Bank. A move above 7.60 would be needed to clear the long term,” Menacorp note added.
Arabtec closed 2.80 per cent higher at Dh1.10. “Arabtec remains in a strong downtrend in the long term trading in
price ranges the share found itself trading at in 2013 just before the bullish run of 2014,” Menacorp note added.
Emaar Properties closed more than a per cent lower at Dh5.77. Ajman Bank closed more than 6 per cent lower at Dh1.96.
Amlak Finance, which is joining the small MSCI index, rose 5.11 per cent to end at Dh1.44.
Emaar Malls jumped more than 2 per cent to end at Dh2.86.
Out of a total of 33 stocks traded on the exchange, shares of 16 firms fell, while shares of other 11 firms jumped.
Qatar index slumped more than 4 per cent, its sharpest in three months, on a cut in MSCI weighting.
“The fall in Qatar has to do with rebalancing and some profit-taking,” said Manibhandu. Qatar index was an outperformer regionally until recently.
Qatar Exchange index closed 4.38 per cent lower at 10,090.81. “The weakest player in the GCC countries would be Saudi Arabia because of its deficit and falling reserves,” Manibhandu added.
Saudi Arabia’s Tadawul index closed 0.16 per cent lower at 7,239.93, after losing more than 13 per cent since last year.
Saudi Basic Industries closed 0.43 per cent lower at 89.75 Saudi Riyals, while Alinma Bank closed 0.21 per cent higher at 14.50 Saudi Riyals. Muscat Securities MSM 30 index closed 1.69 per cent lower at 5,547.85.
Kuwait Stock Exchange index closed 0.07 per cent lower at 5,802.36.
Bahrain Bourse All Share index closed 0.32 per cent higher at 1,232.57.