Investors chase small stocks in Abu Dhabi as oil rebounds
Traders switch from Dubai to Abu Dhabi stocks in search of values.
Stock investors chased small stocks in Abu Dhabi index following a 6 per cent jump in oil prices. Dubai index ended more than a per cent higher.
The Abu Dhabi Securities Exchange general index closed 0.66 per cent at 4,380.63.
“Buoyed by a jump in oil prices, active traders went into some of the smaller stocks in Abu Dhabi which are below par,” Sanyalaksna Manibhandu, Manager of Research, National Bank of Abu Dhabi Securities told Gulf News.
Dana Gas jumped 11 per cent to end at Dh0.60, while Eshraq Properties closed more than 8 per cent higher at Dh0.86. Rak Properties closed 3.51 per cent higher at Dh0.59. Methaq Takaful ended more than 2 per cent higher at Dh0.89.
Out of a total of 32 stocks traded on the exchange, shares of 24 firms rose, while other 7 fell. In Dubai, the general index closed 1.40 per cent higher at 3,433.69, above the technical barrier of 3,400.
Upside:
“Technically speaking, a closing of above 3,420 for Dubai index could usher in new upsides with a short-term target of 3,500,” said Talal Touqan, Head of Research and Advisory at Al Ramz Capital. In stock specific action, Arabtec ended more than a per cent higher at Dh1.80. Amlak Finance ended more than 3 per cent higher at Dh1.70. Union Properties closed more than 2 per cent higher at Dh0.910.
Total volumes traded on Abu Dhabi index doubled to Dh394 million, compared to last week, while in Dubai, the traded volumes jumped 25 per cent to over Dh1 billion, indicating interest in Abu Dhabi stocks.
“Investors moved out of Dubai and bought Abu Dhabi stocks which were below Dh1,” Manibhandu said.
Traders would also eye results starting with Emirates NBD from April 19, followed by Dubai Islamic Bank among others, including Emaar Properties.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 1,41 per cent higher at 6,346.16, however Qatar index closed 0.36 per cent lower at 10,128.65. Kuwait Stock Exchange index closed 0.40 per cent higher at 5,251.11. Muscat Securities MSM 30 index closed 0.75 per cent higher at 5,652.01.
