File photo: The Abu Dhabi Securities Exchange (ADX) in Abu Dhabi. Image Credit: Ahmed Kutty/Gulf News Archives

DUBAI: Banking shares on the Abu Dhabi bourse witnessed renewed buying on Wednesday after a number of subdued sessions, resulting in a 1.2 per cent rally on the Abu Dhabi index.

The Abu Dhabi Securities Exchange general index closed 1.27 per cent higher at 4,974.84. First Abu Dhabi Bank closed 0.95 per cent higher at Dh14.82.

Abu Dhabi Commercial Bank closed 2.29 per cent higher at Dh8.49. Abu Dhabi Islamic Bank closed 2.29 per cent higher at Dh8.49.

“ADIB may see a level of Dh4.80/4.95 in the near term,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities, said in a note. FABS had suggested a buy in ADIB at Dh4.40 last week.

The Dubai Financial Market general index’s upside was limited due to weakness in Emirates NBD. The Dubai Financial Market general index closed 0.41 per cent higher at 2,639.48. Dubai Islamic Bank closed at Dh5.13, up 1.18 per cent. Emirates NBD closed 1.32 per cent lower at Dh11.20.

Emaar Properties closed flat at Dh4.34. Emaar Malls closed 3.63 per cent higher at Dh2.

“The stock is on a gradual run-up and broke over the strong neckline resistance at Dh3.97 today. If a close is registered over the given resistance then it is expected to attract further buying and gain momentum towards the higher targets of Dh4.15/4.30 in the coming weeks,” Prakash said.

Elsewhere in the Gulf region, Saudi Tadawul index closed was 0.18 per cent lower at 8,984.59.

Saudi fund

ADS Investment Solutions (ADSI), the Abu Dhabi-based asset manager, said it has launched a Saudi Arabian smart beta fund to meet growing demand for exposure to the Middle East’s biggest and fastest-changing economy.

To meet demand for reduced-volatility and low-cost access to Saudi Arabian equities, ADS Investment Solutions is collaborating with index provider FTSE Russell. The FTSE ADS Custom Minimum Variance Index, which follows a smart beta, rules-based equity strategy that minimises portfolio volatility, was jointly created in 2018 ahead of the launch this week of the FTSE ADS Saudi Minimum Variance Fund, which tracks the index.

The US dollar-denominated fund is domiciled in the UAE capital’s financial centre, Abu Dhabi Global Market, and offers daily liquidity with one of the lowest annual management fees for a Saudi equity fund, at 0.40 per cent.