Abu Dhabi – Mubasher: The Abu Dhabi Securities Exchange (ADX) ended Tuesday on a low note, dragged lower by its leading sectors, namely banks, real estate, and energy.
The general index fell 0.32% or 15.64 points to close at 4,855.94 points. Turnover amounted to AED 130.172 million after 34.86 million shares changed hands through 1,349 transactions.
The banks sector shed 0.35% after First Abu Dhabi Bank (FAB) dropped 1.3%, while Abu Dhabi Islamic Bank (ADIB) declined 0.58%.
Commenting on the ADX’s performance on Tuesday, Raed Diab, head of investment research at KAMCO, said that the bourse was still undergoing a downward correction following its sharp rise in June.
The analyst expects purchasing power to gain momentum in the coming period on the back of companies’ positive third-quarter and nine-month results.
Investors may resume building new positions amid positive forecasts for the banking sector, particularly after the recent decisions and measures implemented by the UAE President and government, Diab told Mubasher.
The real estate sector decreased 0.23% on the back of RAK Properties’ 3.36% fall, while the energy sector slipped 0.11% after Dana Gas tumbled 1.74%.
Oil prices have been relatively stable of late, the analyst went on, indicating that this would continue in the coming period and support forecasts for strong purchasing power.
From a technical perspective, the ADX’s general index will see support at 4,800 points, which would allow it to rise to 4,900 and 4,925 points, the analyst added in a comment to Mubasher.
However, a fall below 4,800 points would take the index lower towards 4,740 points, Diab concluded.
