Dubai: Shares of etisalat hit a record high on Thursday as traders bought into the stock post stronger than expected second quarter results. Trading activity was witnessed in select stocks in UAE bourses
etisalat hit a peak of Dh20.20 in trade, before ending 0.25 per cent higher at Dh20. The previous all-time peak of Dh19.83 was seen on April 28, 2005. About 4.81 million shares were traded on the name, its highest in seven weeks. The stock has outperformed the index, by registering 24 per cent gains.
“Good results propelled buying in etisalat stock pushing it at its all-time high, but later it ended flat. The outlook is still bullish if 19.60 holds strong,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities. Beating analysts expectations, etisalat recorded a 51 per cent jump in net profit for the second quarter to June on the back of forex gains, lower financing cost.
Etisalat kept the downside in Abu Dhabi stocks limited. The Abu Dhabi Securities Exchange General Index closed 0.07 per cent lower at 4,593.58.
Abu Dhabi Commercial Bank closed nearly 2 per cent higher at Dh6.80. Out of a total of 28 stocks traded on the bourse, shares of 12 firms fell, while other 11 rose.
Select buying:
In the broader market, trading activity was witnessed in select counters like Tabreed, Du, Aramex and Air Arabia.
National Central Cooling or Tabreed ended 3.45 per cent higher at Dh1.50 after posting a 6 per cent increase in net profit for the six months to June.
Aramex closed more than 3.5 per cent higher at Dh4.00, after stake sale reports by the founder, while Air Arabia closed more than 3 per cent higher at Dh1.45.
“Air Arabia witnessed non-stop buying after it broke over the neckline resistance at Dh1.38. The stock will hit our target zone at Dh1.50/1.55,” said Prakash.
Aramex took support at Dh3.72 and picked up further to form a high at Dh4.04. DU as well attracted buying from the lower support levels of Dh6.78 and closed bullish, expected to target AED7.25 in the near term,” Prakash added.
About Tabreed, Prakash said it broke over the sideways congestion. Tabreed may test the higher trendline resistance of Dh1.68 in the short term.
Overall Dubai index closed a tad higher due to buying support from some of the above mentioned stocks. The index closed 0.27 per cent higher at 3,519.27.
“Momentum indicators may fall back gradually towards the oversold levels to attract the smart money back into the markets,” Prakash said.
Out of a total of 33 stocks traded on the exchange, shares of 17 firms closed higher, while other 11 firms closed lower. The rest remained steady. Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 1.49 per cent lower at 6,335.59, while Qatar exchange index closed 0.45 per cent higher at 10,652.31.
