ADX weighed down by FAB profit-taking

TADAWUL EASES SLIGHTLY FROM TWO-YEAR HIGH AHEAD OF EMERGING MARKET DECISION

The Abu Dhabi index fell more than 1 per cent yesterday, its sharpest fall in three weeks, due to profittaking in shares First Abu Dhabi Bank (FAB).

The Abu Dhabi Securities Exchange (ADX) General Index closed 1.33 per cent lower at 4,550.59. The index fell 1.87 per cent on March 6. First Abu Dhabi Bank shed 2.98 per cent to close at Dh11.4, while Abu Dhabi Commercial Bank (ADCB) closed more than 6 per cent lower at Dh3.41. Dana Gas fell 2.22 per cent to Dh0.88.

The Dubai Financial Market (DFM) General Index eased 0.07 per cent lower to 3,090.54. In stock-specific action, Dubai Entertainments fell 2.55 per cent to Dh0.458. The stock has been falling ever since the company announced plans to get parent company Meraas to refinance it.

“If Dubai Entertainments sees any corrective bounce, it may be short-lived. The supports are placed Dh0.36/0.30,” said Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities (FABS).

Gulf Finance House (GFH) settled 5 per cent lower after it went ex-dividend on Wednesday while Emirates NBD rose as much as Dh11 in intra-day trade after the bank hiked its foreign ownership limit, before easing slightly to close flat at Dh10.80.

“Going forward, markets should responding to the catalysts provided by the UAE government as well as by the surfacing new [developments] on a 10- to 20-year Opec-Russia deal to manage oil prices,” Menacorp said in a note.

“However, for the time being there are no indications or willingness [on the part of] investors to boost the market despite the attractive price level at which local stocks are sitting on. More dividends [are] to come and more downside on stock prices [is seen] as ex-dividend [dates] approach.”

Saudi Arabia’s Tadawul index eased from its highest level in two years. The Tadawul index closed 0.86 per cent lower at 7,874.50, after hitting a high of 7,950, a level last seen in 2015.

The index has been on a one-way upward move from March 5, gaining 7 per cent on the back of an expected inclusion in the FTSE Russell Emerging Market index.