By: Mahmoud Gamal
Abu Dhabi – Mubasher: The Abu Dhabi Securities Exchange’s (ADX) dropped in the week ended 19 October on the back of leading stocks, after the main index fell 0.5% or 23.83 points to close at 4,488.45 points.
The profit-taking trend was the cause behind the slight retreat in the ADX, which followed the big gains achieved previously, technical analyst Mohamed Tawfik told Mubasher.
Some blue chips weighed down the market, led by Etisalat’s stock, which shed 1.4% after the Omani Telecommunications Regulatory Authority (TRA) cancelled the licence for the third mobile network.
Dana Gas dropped 3.8% on the adjournment of the company's sukuk case.
Some stocks grew and saw an increase in liquidity due to the positive expectations for third quarter financial results, said Tawfik.
On the other hand, some stocks increased before the disclosure of their quarterly results such as Aldar Properties, which went up 1.65%.
The insurance sector underwent active trading, as some stocks grew over the week.
Al Khazna Insurance soared 15% to AED 0.31, its highest level since August, while Takaful Emarat added 1.21% to AED 5.01.
After the end of profit-taking in blue chips, the market will grow again, Tawfik commented.
Technically, the ADX dropped slightly to 4,488 points and will probably stabilise at 4,470 points, in order to rise again to 4,560 points, he added.
Tawfik further noted that the short-selling decision will be one of the important ones, which will create a balance between supply and demand forces and help increase the market’s liquidity.
Translated by: Muhammad Abdulwakeel
