The Abu Dhabi Securities Exchange (ADX) ended Wednesday in the red, sliding for the second successive session, falling below the level of 4900 points amid intensive selling and profit-taking.
The market’s benchmark index dropped 2.41%, shedding 119.09 points to 4830.74 points. Around 147.21 million shares traded at a turnover of AED 302.03 million through 2349 transactions. Moreover, a total of 35 companies traded today, of which 25 were in the red, six gained and four remained unchanged.
All ADX sectors declined on Wednesday, with the exception of the consumer staples sector which recorded the only gain of 4.24%. The energy and real estate sectors topped decliners, dropping 4.56% and 4.18%, respectively. Dana Gas and TAQA retreated by 4.84% and 4%, respectively, prompting the sector’s decline.
The real estate sector retreated owing to declines in Aldar Properties, Eshraq Properties and RAK Properties by 4.27%, 3.77% and 3.75%, respectively.
The banking sector fell 2.77% as the National Bank of Abu Dhabi (NBAD), Abu Dhabi Commercial Bank (ADCB), First Gulf Bank (FGB), Sharjah Islamic Bank and Abu Dhabi Islamic Bank (ADIB), lost 6.43%, 3.75%, 2.90%, 1.64%, 1.53%, respectively.
Commenting on the ADX’s performance today, capital market expert Wadah Taha noted that the declines seen on Wednesday are the result of the state of fear and uncertainty that UAE markets have suffered from lately.
The ADX dropped several important barriers owing to such declines, which is a negative indicator that could push UAE markets to dangerous levels, Taha told Mubasher in a statement, adding that the continued decline of oil prices has acted a source of pressure on the region’s markets, including the UAE markets. This comes although the UAE has not announced any cancellation or cost cutting for any of its projects following this decline.
The UAE is capable of overcoming the oil price decline owing to the presence of good financial surpluses added to the fact that the UAE estimated the oil price at low levels in its general budget, which are considered lower than other prices in the region, Taha stated, adding that the political struggles in the region were an additional factor in the UAE markets’ negative performance.