By: Bedour Al Raei
Abu Dhabi-Mubasher: Abu Dhabi Securities Exchange (ADX) saw a negative performance for the second month in row amid a jump in liquidity that was backed by Etisalat.
The general index retreated 1.98% or 85.65 points to reach 4,236.39 points in November, compared to 4,322.04 points in October.
Turnover surged 92.39% to reach AED 6.64 billion ($1.81 billion) in November, compared to AED 3.45 billion in October. Trading volume also jumped 34% to 1.77 billion from 1.32 billion.
The telecom sector was the value leader with turnover reaching AED 3.86 billion, followed by the banks and real estate sector at AED 1.32 billion and AED 914.30 million in a row.
The performance of UAE markets, especially ADX, was “exceptional” in the last session of November, UAE market analyst Wadah Al-Taha told Mubasher.
He added that Etisalat’s stock changed the ADX’s trend in terms of both performance and liquidity following the news that equity index compiler MSCI will add the telecom operator as of 30 November to its emerging markets index.
The DFM’s performance was mainly backed by the tendency of some portfolios and funds to "improve the monthly closures" on Monday.
The analyst said that it difficult to predict that Etisalat’s stock momentum will continue,thus paving the way for profit-taking.
UAE markets are expected to exhibit a sideways-to-bearish trend amid the absence of catalysts, he added.
The banks sector led decliners after falling 5.87% as Abu Dhabi Commercial Bank, National Bank of Abu Dhabi and First Gulf Bank decreased 16.67%, 12.07% and 2.83%, respectively.
The energy sector lost 0.53% after Abu Dhabi National Energy retreated 10%. Meanwhile, Dana Gas trimmed the sector’s losses after increasing 2.13% following the news that it, along with Crescent Petroleum, reached an “amicable and mutually beneficial settlement agreement” with RWE Supply & Trading.
The telecom sector advanced 7.84% due to rise of Etisalat’s stock.
The real estate sector gained 0.76% after Aldar Properties added 2.63%, while Eshraq Properties fell 17.74%.
Translated by: Julian Nabil
