UNB, ADCB make gains as Abu Dhabi index nears 5,000-mark
(11/6/2018 8:00:00 AM)
Union National Bank and Abu Dhabi Commercial Bank regained their momentum on the Abu Dhabi bourse on Monday ahead of an expected merger, helping the benchmark close in on the keenly watched 5,000-mark.
The Abu Dhabi Securities Exchange (ADX) general index ended the session 1.07 higher at 4,972.28 after ADCB shares gained 0.25 per cent to close at Dh8.03 and UNB rose 1.24 per cent to Dh4.90.
“The trendline support at 4,830 attracted renewed buying, pushed the index higher to 4,920 and may retest the previous high at 5,039,” Shiv Prakash, a senior analyst with First Abu Dhabi Bank Securities (FABS), said in a note.
Meanwhile, the Dubai Financial Market (DFM) general index closed flat at 2,794.80 on Monday. “The Dubai index may attract minor profit-taking, with support seen at 2,776,” Prakash said. “If the index closes over 2,850, it may see fresh inflows and extend gains towards the higher resistance at 3,000.”
Real estate also gained momentum as stock prices traded at support levels. As a result, traded value improved, having jumped to 94 million shares. Emaar Properties closed 0.58 per cent lower at Dh5.17, while Arabtec was nearly 3 per cent higher at Dh2.09.
Dubai Islamic Bank rose 0.3 per cent to Dh5.30 while First Abu Dhabi Bank (FAB) gained 1.58 per cent to Dh14.18. Saudi Arabia’s Tadawul All Share Index traded sideways after extreme volatility triggered by last month’s murder of journalist Jamal Khassoggi. The Saudi benchmark shed 0.36 per cent to close at 7,818.63.
Saudi Basic Industries Corp inched up 0.16 per cent to 126.20 Saudi riyals and traders await third-quarter results for direction. “Investors have been waiting to see if DXB Entertainment, which managed to increase its earnings after a difficult period, could [provide] better numbers this quarter. However, the company remains in a tough spot,” Issam Kassabieh, a senior financial analyst at Menacorp said.