By: Bedour El Raie
Abu Dhabi – Mubasher: The Abu Dhabi Securitas Exchange’s (ADX) general index lost 2.13% or 106.479 points to close at 4,882.26 points in the week ended Thursday, 25 October, dragged down by the real estate and banks sectors.
A total of 226.984 million shares were exchanged at a traded value of AED 660.817 million.
The banks sector declined 3.59% after The First Abu Dhabi Bank (FAB) plunged 4.47%, while the real estate was down 3.56% after Aldar Properties plummeted 4.05% and Eshraq Properties fell 1.30%.
The energy sector was down 0.91% after TAQA retreated 7.7%.
On the other hand, the telecom sector and its sole stock Etisalat rose by 1.19% each.
The market witnessed heavy selling pressures, which took a huge toll on the market’s performance and its heavyweights, commented Eyad Al-Bareeqy, general manager of Al Ansari Financial Services.
The banking sector is the catalyst of the financial markets and a major indicator of the local economy’s direction, he told Mubasher, noting that selling pressures combined with profit taking and low liquidity and volumes dragged the market down this week.
The analyst also noted that the ADX had shrugged off the positive financial disclosures made by banking stocks this week, including FAB’s over AED 9 billion profits in the first nine months of 2018.
https://english.mubasher.info/news/3357046/FAB-posts-AED-3bn-profit-in-Q3
Al-Bareeqy further described that the reasons behind the ADX’s weekly decline were “unjustified” and “unconvincing”, adding that investors were cautious amid falling markets in the US and Asia.
Should the ADX see a few sessions of gains, in addition to higher liquidity and traded volumes, then this would support the market in the coming period, allowing it to regain its footing, the analyst concluded.
