Heavy buying into Abu Dhabi bank stocks continues
Stock market traders have been buying banking shares on expectations of more merger
Dubai: Banks such as First Abu Dhabi Bank (FAB), Union National Bank (UNB), Dubai Islamic Bank (DIB) witnessed non-stop buying, while the Abu Dhabi index hit its highest levels since 2006 on Monday.
Stock market traders have been buying banking shares on expectations of more mergers, and a windfall from the synergies that may follow, post the mergers and acquisitions.
Rumours have been floating around of a merger between First Abu Dhabi Bank and Abu Dhabi Islamic Bank, which have been denied by the respective banks.
FAB closed 1.83 per cent higher at Dh16.68, and was the most active stock on the Abu Dhabi Securities Exchange (ADX).
FAB contributed 25 per cent of the total traded value of Dh158 million.
ADCB closed 1.12 per cent higher at Dh9.90. UNBD closed 0.70 per cent higher at Dh5.77.
The ADX general index closed 0.75 per cent higher at 5,386.44, after hitting a high of 5,388.58, nearing its highest level since 2006.
Dubai Islamic Bank closed 0,39 per cent higher at Dh5.15.
The Dubai Financial Market general index closed flat at 2,820.95.
Emaar Properties closed 1 per cent higher at Dh5.02.
Traded volume rose 7.8 million, the highest since early April, compared to 2 million in the previous session.
“Emaar is trading just over the trendline support, and shall attract buying soon to target Dh5.28/5.40 in the coming sessions. Traders may look to buy at Dh5.03,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said.
Emaar Malls closed 2.33 per cent higher at Dh1.76.
Emaar Malls may target Dh1.83/1.95 in the short term, Prakash said. Emaar Development closed half a per cent higher at Dh3.86.
Union Properties closed 0.67 per cent lower at Dh0.413.
“Volumes decreased after Union Properties’ board stated it would follow through with the share buy-back in aims to resell them as this share buy-back could be costly for the firm and slow its momentum; however investors would hope that the execution price is attractive to them,” Essam Kassabieh, senior financial analyst at Menacorp said.
Gulf Finance House closed 0.92 per cent lower at Dh1.08.
Elsewhere in the Gulf, Saudi Tadawul index closed 0.48 per cent lower at 9,195.02. Saudi Kayan Petrochemical Co. closed 5 per cent lower at 13.40 riyals, while Saudi Chemical Co. ended 3.41 per cent lower at 33.95 riyals. Emaar The Economic City ended 2.86 per cent lower at 9.50 riyals. The Muscat MSM 30 index closed 0.15 per cent lower at 3,978.60. The Kuwait all share index ended 0.89 per cent lower at 5,748.85.