ADNOC Distribution stock pares gains to close flat; Emaar weighs on Dubai

ADNOC Distribution failed to maintain its initial rally on the first trading day of its shares, closing flat at AED 2.65 on Abu Dhabi Securities Exchange (ADX) on Wednesday.

The stock had surged 16 percent soon after market open, indicating high investor interest. ADNOC Distribution accounted for nearly half of ADX’s total volume for the day of 96 million.

The ADX headline index, however, closed positive supported by heavyweight First Abu Dhabi Bank (FAB). The general index was up 0.1 percent at 4,384 points, with FAB higher by 0.5 percent to AED 10.35.

Telecom firm Etisalat fell 0.3 percent to AED 17.25.

In Dubai, the main index slumped 1.4 percent to 3,405 points, with blue chip Emaar Properties down 6.2 percent to AED 7.22. Emaar Development fell 2.2 percent to AED 5.38.

Emaar announced that it will distribute AED 4 billion of special dividend to shareholders from the proceeds of the recent Emaar Development initial public offering (IPO). The dividend, which stood at AED 0.56 per share, came below market expectations.

Elsewhere, Qatar’s QE index rose 2.2 percent; Kuwait added 0.7 percent; and Oman rose 0.3 percent.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com