By: Bedour Elraei
Abu Dhabi - Mubasher: The Abu Dhabi Securities Exchange (ADX) saw a negative performance in October as it witnessed its biggest decline in 5 months on the back of banks, real estate and telecom sectors.
Abu Dhabi General Index (ADI) declined 4.24% or 176.14 points in October, registering its biggest drop since May, and closing at the level of 4,300.18 points.
Traded values decreased to AED 2.33 billion compared to AED 2.5 billion in September, while traded volumes increased to 1.3 billion shares from 1.25 billion shares last month.
The telecom sector shed 4.5%, as Etisalat went down by the same percentage.
Meanwhile, real estate fell 2.8% after Eshraq and Aldar declined by 8.43% and 2.62% respectively.
The negative results achieved by some companies have badly affected the main index and the markets in October, said Gamal Agag, the general manager of Al Sharhan Stock Center, who added that cautious behavior still dominates the traders’ activity.
The banks sector dropped 5.16% as Abu Dhabi Islamic Bank (ADIB) and Abu Dhabi Commercial Bank (ADCB) slid 5.77% and 5.3%, while First Gulf Bank (FGB) lost 4.24%.
UAE’s markets was affected in October by posting the third quarter financial results especially for the banking sectror, financial analyst Wadah Altaha told Mubasher.
Most of these financial results didn’t have a significant effect as most of it showed a decline in profits, he explained.
On the other hand, the energy sector gained 1.66%, as TAQA surged 14.81% while Dana Gas added 1.85%.
The effect of oil prices on the market has faded, according to Altaha who added that this doesn’t mean that the market has gained an immunity against oil prices fluctuations.
ADX was slightly affected by the Saudi market after the recent austerity measurements by the kingdom’s government.
Altaha advised traders not to overdo speculations and to consider risk assessment by not pouring all liquidity in the market, while Agag said that the Emirati market is still in need for foreign investments to raise the liquidity in the market, as it recently witnessed some low levels.
Translated by: Moslem Ali
