By: Bedour El-Raie
Abu Dhabi – Mubasher: The Abu Dhabi Securities Exchange’s (ADX) general index saw a rise for the third successive month and recorded the highest traded value in 22 months (nearly 2 years).
The index edged up 0.11% or 4.79 points and closed 4,548.82 points on 31 January 2017.
Traded volume grew significantly compared to December figures, while turnover was at its highest level in almost 2 years, with 5.81 billion shares traded at a value of AED 7.73 billion.
UAE markets have received major support from active trading of defensive and small-sized stocks during January, Fady El-Ghattis, CEO of Think Financial Studies said.
He told Mubasher that banks’ preliminary financial results, which held well, gave investors and traders good sign about investing the market.
UAE markets have begun to shrug off impacts from oil markets, El-Ghattis noted, indicating that while oil prices were stable during the month, ADX stocks gained significantly.
Stability in UAE bourses in the coming month requires stability or gains from the remaining banks, who have not disclosed their financials yet, particularly as real estate companies are expected to post negative results, the analyst told Mubasher.
The energy sector fell 2.87% after TAQA dropped 3.77%, while the consumer staples sector shed 2.19% after Agthia retreated 4.23%.
The telecom sector was down 1.92%, pressured by Etisalat which levelled down 4.79%. similarly, the banks sector shed 0.68% after the National Bank of Fujairah led fallers, sliding 26.78%.
On the other hand, the insurance sector surged 14.95% after Al Wathba Insurance skyrocketed by 70.68% during the month.
The real estate sector increased 0.57%, backed by Eshraq’s and RAK Properties’ gains of 13.46% and 19.70%, respectively, while Aldar trimmed the rise, after falling 2.66%.
“Investors are likely to focus on leading stocks next month, particularly after these stocks saw calm trading in January,” El-Ghattis added.
Translated by: Nada Adel Sobhi
