Abu Dhabi – Mubasher: The Abu Dhabi Securities Exchange (ADX) suffered a sharp drop in May, witnessing lower trading activity, and weighed down by the banks, energy, and real estate sectors.
The general index dropped 2.11% or 95.26 points to end the month at 4,427.30 points.
The energy sector retreated 4.31% after Dana Gas and Abu Dhabi National Energy Co (TAQA) slid 4.65% and 3.39%, respectively.
The banks sector shed 3.10%, dragged down by Abu Dhabi First Bank’s 4.52% drop, whereas Abu Dhabi Commercial Bank (ADCB) gained 5.49%.
The consumer staples sector was the ADX’s biggest loser, plunging 8.09% on the back of Agthia’s stock, which dived by 8.96%, while the investment sector lost 6.05% after Waha Capital dropped 5.95% during May.
Furthermore, the telecoms sector and its stock Etisalat declined 1.43%. The real estate sector registered the lowest loss of 0.12%, after Eshraq Properties retreated 8.70%, whereas Aldar’s 2.31% gain trimmed the sector’s fall.
On the positive side, the services sector surged 8.2%, while the industrial sector increased 2.73%
Market capitalisation was down by AED 7 billion ($2 billion) in May to AED 426.864 billion ($116.20 billion) compared to April’s closing of AED 433.830 billion ($118.086 billion).
The ADX’s declines were slightly lower than those on the Dubai Financial Market (DFM), said Raed Diab, head of investment research at KAMCO, noting that he expects further selling to pressure the ADX towards 4,400 and 4,355 points.
Trading activity is expected to drop significantly in June as trading normally declines during Ramadan, which is followed by the Eid Al-Fitr holidays, the analyst told Mubasher.
Diab also expects the ADX to see a sideways performance amid an absence of market-boosting catalysts and as investors continue to keep an eye on oil movements, which is expected to be a major factor impacting markets in the coming period.
