The Abu Dhabi Securities Exchange sunk to a two week low yesterday to end the weekly session in the red, in what analysts say is a lag on the rise seen on the bourse in neighbouring Dubai.
ADX down but a high for DFM
The Abu Dhabi Securities Exchange (ADX) ended the week yesterday at a two-week low, in what analysts say is a lag on the increases occurring on the bourse in neighbouring Dubai.
The ADX General Index closed the week down 0.96 per cent at 2,568.29. By comparison, the Dubai Financial Market (DFM) General Index finished up 0.29 per cent at 1,660.26 to end the week on a three-day high.
Haissam Arabi, the chief executive at Gulfmena Investments in Dubai, said the ADX drop was a correction in line with similar patterns seen earlier in the week on the DFM.
"The ADX is always a lagger compared to Dubai. What we're seeing is the Abu Dhabi bourse coming to terms with the correction we've seen on the DFM," Mr Arabi said. "Dubai's bourse has now registered two positive sessions. It is still very much range-bound, and it will take some time to break out of that, but it is likely it will do so on the upside. Then we will see the ADX follow suit afterwards."
Oman's benchmark stock index rose to its highest in more than a week after a report that the central bank would discuss a possible merger between the local unit of HSBC Holdings and Oman International Bank
The MSM 30 Index rose 0.6 per cent, the most since March 13, to 5,957.76 at the close in Muscat, taking this week's gain to 0.1 per cent. The measure has added 4.6 per cent this year.
Oman's central bank is scheduled to discuss the possible merger between Oman International and the HSBC unit, the regulator said in an emailed statement after the close of trading yesterday.