Emirates NBD scrip extends gains after Turkey deal

Dubai: Dubai’s stock market rose for the sixth straight session on Thursday as top lender Emirates NBD extended gains after it announced a deal to buy Turkey’s Denizbank, while most major Gulf markets inched up. The Dubai index increased 0.6 per cent, with Emirates NBD adding 4 per cent in active trade.

On Wednesday, the bank said it will buy Denizbank for 15.48 billion lira ($2.75 billion, Dh10.1 billion)) from Russia’s state-owned Sberbank. The offer is a roughly 20 per cent discount to a previously agreed price after a steep fall in the Turkish lira.

Shuaa Capital rose 1.5 per cent. Abu Dhabi Financial Group (ADFG) is set to take over Shuaa in a reverse merger, two sources familiar with the matter had told Reuters on Tuesday.

Abu Dhabi’s index was flat with Abu Dhabi Islamic Bank gaining 3 per cent. The bank denied that it was in merger talks with First Abu Dhabi Bank after a news report said the emirate was considering combining them. First Abu Dhabi traded flat.

The Saudi index edged up 0.2 per cent, with Al Rajhi Bank increasing 1.3 per cent. Sahara Petrochemical rose 0.8 per cent after it announced an amendment to the proposed merger of equals with Saudi International Petrochemical Company (Sipchem).

The firm said CEO Saleh Mohammad Bahmdan will be appointed as chief executive of the combined company and Sipchem’s chief executive Abdullah Saif Al Saadoon will be appointed as chief operating officer of the group. Sipchem was up 0.1 per cent.