Dubai: The Abu Dhabi Securities Exchange (ADX) general index rose marginally on Wednesday, though volumes declined as institutional investors stayed away ahead of the Eid holidays.
The market's general index rose on gains in construction, real estate, industrial, energy and telecommunications stocks, but banking, healthcare and insurance stocks fell.
The ADX general index rose 0.56 per cent to close at 2,910.16 with day traders being the most active participants.
Market analysts say anticipation of strong fourth quarter earnings of blue-chip stocks will drive the next market rally, which may early start next month.
Greater trading volumes and higher liquidity in the market are also anticipated at the time as local and foreign funds are likely to park funds in local stocks on expectations there will be higher returns on investment when the rally gains momentum. The analysts also say some blue-chip stocks are attractively valued.
On Wednesday, 53.99 million shares cumulatively worth Dh124.42 million were traded. Of the 38 companies traded, 22 rose, 8 fell and 8 remained unchanged. Union Cement Co. was the main gainer, rising 9.49 per cent to close at Dh1.73.
Shares of Oman and Emirates Investment Holding Co. fell the most, down 7.33 per cent to Dh1.35. Real estate company Sorouh Real Estate was the most actively traded by value.
Dubai's bourse jumped 1.08 per cent as gold prices rose. The benchmark closed at 2,093.16.
Most of the 29 traded stocks gained, but two declined and five were unchanged.
Emaar climbed 0.73 per cent to close at 4.16, and competitor Arabtec moved up 0.99 per cent to Dh3.07.
"There's no logic and no clear trend. It's day traders moving in and out of the market and there's not a lot of institutional flow," said Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading.
"Institutional flow will be light until we get certain catalysts such as more news on Emaar's merger or Arabtec's Russian projects."
US crude for January rose 38 cents to $76.40 a barrel yesterday. Brent crude was up 67 cents at $77.13.
"There are a few little straws in the wind to help the market back up, such as better demand in China and the weak dollar," said Christopher Bellew, a broker at Bache Commodities.
The dollar also supported gold, which struck a record high for a second time this week. Crude has more than doubled from below $33 in December, though the market is still far below its record of more than $147 hit in July 2008.