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The Abu Dhabi Securities Exchange jumped sharply yesterday and broke through its neckline resistance at 2,445 within a few minutes of the start of trading.

The index added 108.98 points, or 4.49 per cent, to close at 2,533.78. Most active stocks rallied by almost their up limits during the session.

Telecommunications, real estate and energy stocks including Etisalat, Aldar, Sorouh, Aabar, Dana and Taqa dominated trading.

Heavyweight Etisalat added eight per cent to close at Dh13.50. Aldar added 9.6 per cent to reach Dh2.75 after breaking through resistance at Dh2.48. The stock is heading towards its resistance level between Dh3 and Dh3.25.

Sorouh jumped to Dh 2.57, adding 8.12 per cent. Taqa, Dana and Aabar advanced by 5.59, 3.33, and 2.73 per cent respectively.

However turnover during the session remained low as 164.5 million shares changed hands at a total value of Dh267.1 million.

The rally in the ADX was in line with the regional and global trend as the majority of world markets advanced.

All GCC markets except the Kuwait Securities Exchange rallied on the positive sentiment. The ADX advanced the most among its GCC peers, while the Dubai Financial Market was the second biggest gainer.

Analysts highlighted the rally in the real estate and energy sectors as the main factor behind the jump in the ADX index.

“There is active trading in these stocks due to the high liquidity in them compared to other listed stocks on the market,” said Abdul Hakim Jamil, Trading Manager at Al Borouj Stocks.

“Several pieces of news moved the two sectors including the positive outlook for the property market in Abu Dhabi and the increasing oil price.

“There is some kind of correlation among those stocks as we notice that when Aldar advances Sorouh follows during the next session. This pattern is repeated among energy stocks including Aabar, Dana and Taqa. They are attracting some speculation due to the movements in their prices.”

Jamil added that local investment groups were injecting liquidity into the market and targeting selected stocks, but at a slow pace.

“This explains the high jump in the ADX index on low turnover. The rally in the market was not encouraging for investors who are focusing on short-term profit booking. They focused their investments yesterday in the DFM which is witnessing high volatility and giving more opportunities for quick profit booking.”

Jamil said some investors were worried about the market’s ability to sustain the rally.

“There are expectations that stocks markets will retreat next month and investors are preferring to enter the markets during the current bounce for short-term movements.”

Etisalat rises 8%

Heavyweight Etisalat was among the top risers on the ADX as it added eight per cent to close at Dh13.50. The stock was last traded at Dh13.65, indicating a bullish trend in the short term.

The active trading in Etisalat came after the company increased its bonus shares for the second half of 2008 to 20 per cent from 10 per cent during its general assembly meeting on Monday.