Abu Dhabi Stocks Decline

The Abu Dhabi stocks have plunged to the lowest level in last 7 days as the earlier speculated rally for 2013 was kind of overdone. The stocks also were affected by the decline of price in crude oil. The benchmark gauge ADX General Index went down by 0.3% and is currently at 3036.64. This marks its lowest level since 26th February. On the other hand, the DFM General Index of Dubai went ahead by 0.4%. The total shares traded today in the Abu Dhabi market on today was at 122 million shares. Incidentally, the 12-month daily average is of 81 million.

First Gulf Bank PJSC, which saw its shares surging by 16% in 2013 so far, experienced a decline of 0.7%. For 2012, it recommended a cash dividend of 83 fils per share. Each share of the company is now priced at 13.35 dirhams. The 2nd largest property developer in Abu Dhabi, SOROUH, on the other hand, sank for the 2nd time in last 3 days. Its shares went down by 1.1% and every share is now priced at 1.88 dirhams. Incidentally, today’s close for SOROUH was the weakest since 26th February. The company has reported a full year net income that increased by 32%.

According to the Managing Director of Brokerage division of Menacorp, Nabil Rantisi, most of the companies have already announced their dividends & results and it is time for the traders for simply taking the profits now. Rantisi added that Abu Dhabi market is still looking good and there is chance of a possible upside as well.

Per barrel crude oil now costs $90.68 and this is its lowest settlement since 24th December. The manufacturing industry’s less than forecast expansion in China and further contraction in several countries of Europe played important part in declining the price of crude oil.

Incidentally, the Gulf Arab Oil exporters supply around one-fifth of the world’s oil and Abu Dhabi has most of the oil reserves of the country.

Among other countries in the Gulf Cooperation Council region, benchmark gauge of Bahrain increased by 0.7%. The MSM30 Index of Oman and Kuwait’s benchmark gauge both jumped up by 0.2%. The Tadawul All Share Index of Saudi Arabia however declined by 0.4% marking an end to the 2-day streak of gains. The stock market of Qatar was closed on today due to it being a holiday.