Tuesday, Sep 15, 2015
Abu Dhabi: Abu Dhabi index ended higher after etisalat shares rose as much as 4.5 per cent in trade with robust liquidity.
The Abu Dhabi-based telecommunications company allowed foreign investors to trade its shares directly for the first time on Tuesday, pumping significant liquidity into ADX.
The ADX general index went up 0.42 per cent to reach 4,504.61, while the DFM index rose 0.65 per cent to reach 3,533.95. Etisalat shares rose as much as 4.5 per cent in trade, to become the most active share.
In Abu Dhabi, trade values reached Dh741.3 million in the capital — Dh624.4 million (84 per cent) of which went to etisalat whose shares ended at Dh14.5. In Dubai, trade values reached Dh203 million.
Sebastien Henin, head of asset management at The National Investor, attributed the slow movement of the indices to a lack of news flow.
“The only piece of news that people are waiting for is the potential interest rate hike from the US, but the fact is that it will not necessarily have a big, direct impact on the UAE economy. It might trigger volatility among the emerging market space so in that case, we might feel the pinch in the UAE … Right now, investors are waiting for that announcement before they take any decisions,” he said.
Dubai’s blue chips mostly ended in the green as Emaar share prices went up 1.13 per cent to reach Dh6.24, Damac rose 3.53 per cent, Dubai Islamic Bank gained 1.2 per cent, and Amlak grew 1.51 per cent.
Air Arabia, however, fell 0.71 per cent, and Arabtec ended flat at Dh1.8.
Henin said he expected the DFM index to trade in the same narrow levels until the Federal Reserve announces the results of its meeting.
“On the medium to long term, valuations have started to be attractive. At the same time, there are still some uncertainties especially around oil prices. Even though the UAE is a diversified economy, there’s still an indirect impact from global oil prices, so I would say the environment is a bit challenging,” he said.
Meanwhile, looking at oil prices, Ole Hansen, head of commodity strategy at Saxo Bank, said in a statement, “Global inventories are high and look set to increase further over the coming months. We see the very short-term range being between $43 and $47.5, with the risk skewed to the downside.”
In Abu Dhabi, Methaq Takaful Insurance topped the gainers’ list with a 4.4 per cent price increase, followed by Ras Al Khaimah Cement Company with 2.41 per cent, Agthia Group with 2.3 per cent, Union Cement with 1.85 per cent, and Abu Dhabi Commercial Bank with 1.78 per cent.
Of the 30 stocks traded on DFM, 17 went up, 10 went down, and three remained unchanged. Of the 23 stocks traded on ADX, 12 advanced, seven declined, and four remained flat.
By Sarah Diaa Staff Reporter
Gulf News 2015. All rights reserved.
