DIB shares witness buying in Dubai equity market

13/04/2017 05:40 AST

Dubai Islamic Bank (DIB) shares witnessed buying a day after the company posted better than expected results, outperforming the index, which has been in a range below a key barrier.

DIB shares closed 1.72 per cent higher at the intra-day high of Dh5.90. “We saw buying in DIB, and that was because results came in good yesterday and they have very good balance sheet momentum. I’m much more enthusiastic on DIB than UNB. DIB would be a story for the rest of the year,” said Sanyalaksna Manibhandu, director Research, National Bank of Abu Dhabi Securities.

“The bank has been growing their balance sheet for the past more than three years, outperforming its other peers,” Manibhandu said.

DIB was the most active stock, contributing more than 18 per cent of the total traded value of Dh390 million.

The Dubai Financial Market General Index closed 0.15 per cent higher at 3,540.60, after failing to breach the key barrier or also called 50-day moving average of 3,567. Profit-taking was seen in Gulf Finance House and Shuaa.

GFH closed 2.81 per cent lower at Dh2.42. Shuaa Capital closed more than 2 per cent lower at Dh1.73.

Emaar Properties closed 0.41 per cent lower at Dh7.35. DXB Entertainments closed more than 3 per cent lower at Dh0.997. Going ahead, results would determine the direction of markets. “Dubai stocks can be influenced by good results. Going forward, if we see good results, we can see both Dubai and Abu Dhabi go forward,” Manibhandu said.

The Abu Dhabi Securities General Index closed 0.17 per cent lower at 4,555.06. Union National Bank saw buying despite disappointing results.

UNB closed 6.36 per cent higher at Dh4.85, and was the top gainer in trade. Abu Dhabi Commercial Bank closed 2.31 per cent higher at Dh7.10.

Elsewhere in the Gulf, due to firm oil prices, Saudi Arabia’s Tadawul index closed 0.89 per cent higher at 7,099.13, outperforming the other regional peers. The Qatar exchange index closed 0.72 per cent higher at 10,489.28.

Gulfnews