By: Bedour Al Raee
Abu Dhabi – Mubasher: The Abu Dhabi Securities Exchange’s (ADX) general index lost 0.55% in the second quarter of 2018, while market capitalisation declined to AED 461.03 billion in Q2-18.
The ADX’s general index increased during the first quarter of 2018, pushed up by the energy and banks sectors, gaining 186.96 points, or 4.25%, to close at 4,585.4 points.
The telecommunication sector and its only stock, Etisalat, decreased by 8.5% each from April to the end of June, while the real estate sector shed 6.42%, as Aldar Properties went down 6.16% in the same period.
Local markets tumbled in the second quarter of 2018 due to selling pressure concentrated on the real estate and banks shares, Wadah Al-Taha, member of the National Advisory Board of Chartered Institute for Securities &Investments (CISI), commented.
Abraaj’s capital crisis has also compromised investors’ confidence in the market and harmed liquidity in the DFM, Al-Taha added.
Arif Naqvi, the founder of The Abraaj Group, is facing criminal charges in the UAE for issuing a bounced cheque.
Earlier in June, Abraaj filed for liquidation, as a response to a group of liquidation petitions after the company was hit by money misuse allegations.
Cayman Islands court has approved a request submitted by Abraaj Group for a provisional liquidation of its business, allowing for a court-supervised restructuring and the protection of stakeholders’ rights.
Abraaj Group was accused of mishandling a $1 billion healthcare fund and audits discovered that the UAE-based company commingled investor funds with its own money in the healthcare fund.
The investment sector shed 18.8% in the three-month period ended 28 June, as Waha Capital decreased by 20.2%.
On the other hand, the banks sector added 3.63% after First Abu Dhabi Bank (FAB) gained 3.85%.
In June, the ADX sank 45.01 points, or 0.98%, to close at 4,560.03 points.
The energy sector went down 4.7% and the real estate sector lost 3.26%.
The ADX’s trading volume reached 818.751 million throughout the month, while the market’s trading value amounted to AED 2.42 billion.
Several investors abandoned the market in June, as it paralleled with Ramadan – a month that usually sees weak trading – and the inclusion of the Saudi market in MSCI emerging market index, which followed by the attraction of many investments to the kingdom, the analyst revealed.
In the first six months of 2018, the ADX grew 161.59 points or 3.67%, with a market capitalisation of AED 461 billion.
Translated by: Muhammad Khalid
