Apr 16 2009
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Realty, construction and banking lift ADX further
Factors - including sustained buying interest, the government's proactive measures to strengthen the economy, the visit to Dubai by the President His Highness Sheikh Khalifa bin Zayed Al Nahyan, Ruler of Abu Dhabi - boosted investor confidence.
"Most of the investors preferred to build positions in penny stocks hovering below the one dirham level as many fundamentally strong scrips are available at attractive prices," Sherif Abdul Khalek, Institutional Trading Manager at Beltone Financial, told Emirates Business.
"The ADX closed at the 2,646 level and the next level to be seen will be at 2750. This is a positive sign that despite fall in the US markets and mixed trends on the Asian bourse the UAE markets remain resilient."
Property stocks led the index higher on sustained buying interest. Investors are continuing to invest in these stocks ahead of next week's Cityscape Abu Dhabi real estate exhibition, which is expected to give some fresh momentum to the construction industry.
Mathew Wakeman, Managing Director for Cash and Equity-linked Trading at EFG Hermes, said: "ADX continued its bullish rally with RAK Cement, RAKWCT, FGB and RAKCC all attracting buying interest. FGB, which last traded at Dh11.75, closed five per cent higher and is nearing higher levels of Dh12.50 in the short term."
FGB closed five per cent higher at Dh 11.75 and Union National Bank finished the day 1.62 per cent higher at Dh3.13.
Shiv Prakash, a technical analyst at MAC Capital, said: "If the market moves above 2,640, we can see the rally continuing higher towards 2654/2662 resistance levels. Profit booking could step in if we see a break below 2,625 to see the lower support levels of 2,632."
GCC rise on, Saudi slips
All the GCC bourses apart from Saudi Arabia and Cairo yesterday saw continued buying activity in selected stocks. The DFM and the Bahrain bourses were up by more than one per cent while the ADX, Kuwait, Doha and Muscat exchanges closed less than one per cent higher.
Speculators, banking on the region's strong fundamentals, are still upbeat about market direction. Real estate and construction stocks were in demand on speculation about their first-quarter results.
Meanwhile Dana Gas has postponed its annual meeting due to the lack of the required quorum. RAKBank has received approval for conversion of liquidity loans at the EGM held yesterday. With this approval the bank can convert both tranches of liquidity support loans into loans eligible for qualification as Tier 2 capital, RAKBank informed the exchange.
Invest Bank has announced its first quarter results. The bank posted a net profit of Dh88m, seven per cent higher than it achieved in the corresponding period the previous year.
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