The Abu Dhabi Securities Exchange (ADX) recovered yesterday following the surge in banking, insurance and energy sectors.
ADX general index was up 9.60 points or 0.41 per cent.
The index rose 1.3 per cent to 2347.88 points during the first of half of the session, touched the day's high of 2,350 points at 11:30am, and moved in the restricted range of about 30 points before closing at 2,328.32 points as against the previous closing of 2318.72 points.
Banking, insurance, energy sectors primarily pushed the index to close with marginal recovery, while construction and consumer sectors continued to trade in red.
The bourse recorded trading volume of 55.38 million shares worth Dh78.06 million in 1,455 deals; 19 scrips of the total 31 traded companies moved up and nine stocks closed with marginal losses, while three scrips ended without any change in their values.
Reflecting the prevailing uncertainty among traders, the benchmark index, which last week fell below crucial moving averages, continued in a restricted range.
The market is likely to find resistance at the 2,391.36 and 2463.99 levels. Technical analysts forecast that the short-term trend would be bearish with the support level seen at 2276.40 and the next at 2234.07 points.
"If markets remain below the pivot levels of 2330, we can see the next support levels of 2311/2294. Bullishness can be seen only if we see any breakout on 2330 to see resistance of 2347/2366," said Shiv Prakash, analyst (technical), Mac Capital. Meanwhile, Gulf Navigation Holding has informed that the EGM held on Thursday approved the article of association of the company to be amended to allow distribution of dividends twice a year under account of the yearly dividends.
Deal with Libya
The Abu Dhabi Securities Exchange (ADX) will provide consultancy and training services to the Libyan Stock Market (LSM) under a deal signed in Abu Dhabi yesterday.
The memorandum of understanding (MoU) is the latest in a series of agreements signed by ADX with other Arab exchanges to strengthen co-operation, including Jordan, Qatar, Oman, Syria, Sudan and Egypt.
The MoU commits ADX to providing LSM with consultancy and training services and the two exchanges agreed to share trading data and information about listed securities; facilitate the trading of securities listed on both exchanges; and encourage and facilitate the dual-listing of companies, ADX said.
"Co-operation and co-ordination with other exchanges is very important in the early stages of development and we are pleased that LSM recognised the benefit of signing such an agreement with ADX," said CEO Tom Healy.
Suliman Salem Alshahumy, Chairman of the Board of Directors at LSM, said the Libyan exchange was looking forward to working with ADX. "Libyan firms and investors have watched Abu Dhabi's dramatic development with great interest", he said. "The agreement will benefit all our stakeholders."
By Sreenivasa Rao Dasari
© Emirates Business 24/7 2009
