Dubai Financial Market Dubai Financial Market

2,499.93 -50.57 -1.98 %

FAB powers Abu Dhabi index to 52-week high

(8/7/2018 7:10:00 AM)

The Abu Dhabi index gained more than 1.5 per cent on Monday, jumping to its highest level in 52 weeks, on the back of continued buying in First Abu Dhabi Bank (FAB) shares.

The Abu Dhabi Securities Exchange general index closed at 4,883.54, up 1.61 per cent, after hitting a year-high of 4,895.10.

“The support of 4,750 should hold strong. The index may extend gains towards the given target zone at 5,000,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said.

FAB closed 3.32 per cent higher at Dh14. FAB has been on a gaining streak since it went ex-dividend on March 6, gaining 30 per cent. Other banks like Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank and Sharjah Islamic Bank also rose more than 1 per cent.

ADCB closed 1.27 per cent higher at Dh7.17. SIB closed 1.64 per cent higher at Dh1.24. Union National Bank closed 0.57 per cent higher at Dh3.54. The Dubai Financial Market general index closed flat at 2,977.78.

Emaar Development closed 0.57 per cent higher at Dh5.17. DP World closed 0.86 per cent higher at $22.25. Dubai Islamic Bank closed 0.20 per cent lower at Dh5.08. Air Arabia closed 0.93 per cent lower at Dh1.06. Dubai Investments ended nearly 1 per cent higher at Dh2.05.

“A close over Dh2.06 in Dubai Investments shall be considered bullish, and it may hit Dh2.15 in the near term,” Prakash said. Traded value, which came in at Dh93 million on Monday, remained on the weaker side.

“Volumes were at a two week low [on Sunday] as investors held on to their positions in anticipation for the upcoming financial disclosures of the last quarter,” Essam Kassabieh, senior analyst with Menacorp said in a note.

“With a string of financials to be disclosed this week, low volumes are likely to persist on both indices as investors seek further clarification on firms’ second quarter performances and the impact that they will have on the market,” Kassabieh said.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.15 per cent lower at 8,230.13.

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