Banks recovery trigger bounce back in UAE indices

06/02/2017 05:39 AST

UAE indices bounced back on Sunday helped by banks.The Abu Dhabi Securities Exchange General index closed 0.99 per cent higher at 4,490.01. The index shed 3 per cent last week due to a sell off in banks on weaker than expected results.

“Dubai and Abu Dhabi indices both bounced back. There was some disappointment with some of the dividends being proposed by banks in Abu Dhabi. Dubai Islamic Bank and First Gulf Bank met expectations, but others didn’t so that’s why there was selling last week,” Sanyalaksna Manibhandu, Director Research, National Bank of Abu Dhabi Securities said. “People bought back ADCB, FGB. People may have realised that last week was a bit of an overreaction,” Manibhandu said.

Abu Dhabi Commercial Bank closed 2.75 per cent higher at Dh7.10, while First Gulf Bank closed 1.19 per cent higher at Dh12.75. National Bank of Abu Dhabi closed 2.05 per cent higher at Dh9.95. Aldar Properties closed 2.01 per cent higher at Dh2.54. Sharjah Islamic Bank closed 1.97 per cent higher at Dh1.55. Asmak closed 2.99 per cent higher at Dh2.41. Among the losers, Union National Bank closed 2.27 per cent lower at Dh4.30. RAK Bank closed 1.44 per cent lower at Dh4.78.

“There will be a sift from banks to non-banking stocks like Emaar and Air Arabia,” Manibhandu said.

Fourth quarter results of Emaar Properties, which has the highest weightage on the index, are expected to be out later this month.

“Emaar Properties has a potential to surprise. If it pays more dividend that will be a positive,” Manibhandu said. Air Arabia may pay the same dividend as last year, he added. In Dubai, the general index closed 0.67 per cent higher at 3,647.91. Dubai Islamic Bank closed 3.90 per cent higher at Dh6.13. Ajman Bank closed 1.36 per cent higher at Dh1.49. Emaar Properties closed 0.69 per cent higher at Dh7.3. Gulf Finance House closed 0.36 per cent lower at Dh2.79.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.47 per cent lower at 7,065.37. The Qatar exchange index closed 0.25 per cent higher at 10,596.39.

Gulfnews