Abu Dhabi climbs to fresh 19-month high
Abu Dhabi, January 15, 2013
Abu Dhabi's stock index rose to a fresh 19-month high but approaches a strong resistance level, while weak earnings weighed on Qatar's bourse.
Abu Dhabi's index gained 0.3 percent to 2,774 points, close to the April 2011 peak of 2,777 points.
Small-caps rose, a sign that retail investors are dominating trade. Aldar Properties and Sorouh Real Estate each climbed 0.6 percent. Telecoms operator Etisalat, which only UAE nationals can trade, advanced 0.5 percent.
"Although overbought conditions warn of a correction, this does not indicate the end of the up move. We are waiting for a retracement lower towards the 2,695 support level, in order to reinstate long (buy) positions," Mena Corp said in a note.
Dubai's index gained 0.1 percent to 1,738 points, heading back towards Thursday's two-year high.
In Qatar, National Leasing (Alijarah Holding Company) dropped 9 percent after the company reported a decrease in full-year net profit, which came in at 190 million riyals, compared to 215.4 million riyals in 2011.
"People were expecting them to outperform 2011 but it missed estimates in the third-quarter and it's hard to make up those numbers," said Yassir Mckee, wealth manager at Al Rayan Financial Brokerage. "Some short-term investors are disappointed, but it's a good stock for the long term."
Doha's index fell 1.1 percent to 8,547 points, its third decline since last week's nine-month high.
Heavyweight Qatar National Bank extended declines, down 0.8 percent, since posting a flat growth in the fourth-quarter and disappointing investors with its dividend plan. - Reuters