Abu Dhabi’s benchmark stock index retreated for the first time in 12 days amid speculation a rally spurred by improved earnings at the emirate’s companies and infrastructure spending plans was overdone.
Abu Dhabi Commercial Bank PJSC (ADCB), the United Arab Emirates’ third-biggest bank, dropped 1.5 percent. First Gulf Bank PJSC (FGB), which is controlled by Abu Dhabi’s ruling family, fell the most in seven weeks. The ADX General Index (ADSMI) decreased 0.6 percent, the first decline since Feb. 16 and the most since Jan. 17, to 2,625.42 at the 2 p.m. close in the emirate. The measure advanced 6.7 percent in the eleven days through yesterday. Dubai’s DFM General Index (DFMGI) was little changed.
“We expected there to be some profit-taking after such a strong rally,” said Ziad Dabbas, a financial analyst at National Bank of Abu Dhabi PJSC, the U.A.E.’s second-biggest bank by assets. “We have mainly seen speculators in the market and we do need to see some long-term investors come in, that may happen gradually.”
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