Abu Dhabi stocks reversed early gains on Sunday, snapping a four day gaining streak after Eid holidays, but the gauge has been playing catch-up spurred by trading in banking stocks post the National Bank of Abu Dhabi (NBAD) and FGB merger.

The Abu Dhabi Securities Exchange General Index closed 0.17 per cent lower at 4,568. The index gained 1 per cent in the past four sessions. The index has been on a gaining streak, putting the gauge on track for a near 6 per cent gains so far in the year, compared to a 7 per cent gains in Dubai index.

“ADX is almost closer to the highs of 4,637 on April 24, as banking stocks like NBAD and FGB which have higher weightage on the Index are seen gaining momentum on a consistent basis thus maintained index to trade in the bullish territory. The index may extend gains and hit 4,700 in the near term,” Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities said.

The Dubai index, however, has fallen from its April highs. The index has fallen 6.49 per cent from the high of 3,604 seen on April 24.

FGB and NBAD were the most active stocks in trade. NBAD closed steady at Dh10.35, while FGB ended 0.05 per cent lower at Dh12.80. Trading value of both combined accounted for 50 per cent of the total volumes.

Most attractive stock

Other stocks like Aldar Properties, Bank of Sharjah and Eshraq Properties were also active. Dana Gas ended 1.75 per cent lower at Dh0.56, while Bank of Sharjah closed more than 2 per cent higher at Dh1.42. Eshraq Properties closed 1.28 per cent higher at Dh0.79. Out of a total of 23 firms, 8 firms rose, while other 9 fell.

In Dubai, the general index closed 0.42 per cent higher at 3,385.29. Arabtec ended more than 5 per cent higher at Dh1.51, and was the most active stock in trade. Emaar Properties closed 0.32 per cent higher at Dh6.35.

“Traders may look to buy those stocks which are seen lagging and hold potential to catchup and test their previous highs. To name a few, Arabtec and Emaar Properties witnessed good accumulation from their lower support levels and hold potential to target their previous highs,” Prakash said.

ARTC which was seen lagging in the recent past witnessed a bullish breakout on Monday at Dh1.40, crossed over the critical barrier at Dh1.46 and if the neckline support at Dh1.45 holds firm, shall target Dh1.80/1.87 in the short term,” Prakash said.

Price volatility

However, trading volumes remained subdued, and expected to remain for a few sessions. Trading volumes came in at Dh385 million compared to around Dh400 million last week.

“We expect trading volumes to remain relatively low this week, with the potential for price volatility to gradually increase. Lower oil prices and a stronger dollar may continue to affect sentiments,” said Talal Touqan, Head of Research and Advisory at Al Ramz Capital.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index was 0.71 per cent higher at 6,541.41, while Muscat Securities MSM 30 index closed 0.08 per cent higher at 5,816.26. Kuwait Stock Exchange index closed 0.16 per cent lower at 5,380.86. In the wider Middle East, Egyptian EGX 30 index was 4.28 per cent higher at 7,490.50.