DIB’s planned rights issue weighs on DFM index

31/01/2018 06:12 AST

Dubai Islamic Bank (DIB) shares tumbled along with Dubai index on Tuesday after the bank announced plans for a rights issue, but Emirates NBD managed to keep the downside limited. DIB closed 4.59 per cent lower at Dh6.23 after the bank said it is seeking shareholder approval for a plan to raise Dh1.647 billion on the Dubai Finacial Market (DFM) through a rights issue. The paid-up capital will increase to Dh6.58 billion from the present Dh4.94 billion after the issue.

“People are still digesting the DIB rights news,” Sanyalaksna Manibhandu, head of research at First Abu Dhabi Bank Securities, said.

However, stronger Emirates NBD stock, which closed 6.51 per cent higher at Dh9 after news of a possible acquisition, limited the bourse’s fall as the DFM General Index, which was lower by more than 1 per cent earlier in the session, closed 0.44 per cent lower at 3,439.91. Other stocks remained mixed.

Deyaar Properties, which closed 6 per cent higher at Dh0.6, saw a few bulk deals as 135 million shares were traded.

Ithmaar hit an upper limit for a second straight session, closing 15 per cent higher at 0.874. “The trend is up-headed and that may bring few more limit ups in Dubai market,” First Abu Dhabi Bank Securities (FABS) said in a morning note.

Damac Properties closed 2 per cent higher at Dh3.42.

The Abu Dhabi Securities Exchange (ADX) General Index closed 0.27 per cent higher at 4,638.75.

First Abu Dhabi Bank (FAB) rose after the bank announced higher dividends, closing 1.35 per cent higher at Dh11.3.

In other markets, Saudi Arabia’s Tadawul index closed 0.83 per cent higher at 7,631.17 but the Qatar Exchange index slid 1.29 per cent to close lower at 9,328.24.

The Muscat MSM 30 index closed 0.10 per cent higher at 5,007.65.

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