Adib share trading hits three-month high

Abu Dhabi: Abu Dhabi Islamic Bank (Adib) touched a three-month high for trading values on Wednesday when Dh690.3 million worth of shares changed hands.

The surge in business drove the market's trades to a total of Dh897.6 million, although the general index declined by a marginal 0.10 per cent to close at 3,690.43 points.

All the sub-indices ended the session in the red, with the exception of the banking sector, which gained 0.31 per cent on gains by the National Bank of Abu Dhabi, which advanced 0.57 per cent to close at Dh26.65, in addition to the strong performance of ADIB.

ADIB announced on Wednesday that it hopes to raise Dh500 million by selling part of its fixed assets to its clients through investment certificates.

With Emirates International Investment Company announcing that it, as well as affiliates, had purchased a stake of 37 per cent of the bank from the market, with the possibility of increasing that stake in the future, for the purpose of acquiring a controlling share, it is expected that the share will continue its rally for some time to come.

The announcement was revealed by the Emirates Securities and Commodities Authority after the trading session.

Etisalat seems to be facing a strong resistance level at Dh20. It declined by 0.25 per cent to close at 19.95, with analysts attributing its failure to break through the barrier to the huge funds diverted towards ADIB's shares.

Oasis Leasing gained considerably for the second consecutive day, advancing 3.17 per cent to close at Dh3.17, with more than Dh53 million worth of shares changing hands.

In Dubai, Emaar's share price maintained its growth pattern, to close at Dh14.90, with analysts expecting it to easily break the Dh15 level during today's session, given the strong demand, and the last trading price of Dh15.

Overall, Dubai's benchmark index gained a marginal 0.23 per cent to close at 474 points, thanks to the strong performance of the leading shares. Only five of the twenty-three traded shares made gains.

Amlak Finance maintained its strong performance and gained 1.75 per cent, to close at Dh7.55, while Tamweel recovered 1.49 per cent to close at Dh3.40.

"It seems that small investors are back to the market, in addition to the foreigners, Arab and international, which increased the flow of liquidity to the markets," commented Ziad Al Dabbas, the financial analyst at the National Bank of Abu Dhabi.

"With the markets picking up, small investors and speculators found their way back, which affects the trading on some of the listed shares, while big and institutional investors' decisions are mostly related to the fair value of the shares," he added.