Dubai: Strong results from Emirates NBD spurred mild buying, triggering a part recovery in Dubai index,
Emirates NBD closed 1.1 per cent higher at Dh9.20. The Dubai Financial Market general index closed 0.64 per cent higher at 2,516.81.
“Banks look promising especially having seen the reduction in provisions despite some lost bps in net interest margins as a result of rapidly growing deposits and a somewhat down economic cycle,” Essam Kassabieh, Senior Financial Analyst at Menacorp said.
Emirates NBD posted a 20 per cent rise in net profit in 2018 to Dh10 billion. Total income for the year ended 31 December 2018 amounted to Dh17.4 billion; an increase of 13 per cent.
Damac Properties closed flat at Dh1.26. “Damac Properties maintained its retreat and investors’ selling activity over this week could be seen as a possible discount for a no dividend scenario,” Kassabieh said.
Analysts said buying Dubai stocks may be seen as a good opportunity for medium and long-term investors. The Dubai index is expected to recover to 2,700 during this quarter,” Osama Al Ashry
Emaar Properties shares have fallen to Dh4 after rising as much as around Dh9 in early 2018. “I expect Emaar Properties to recover to Dh5.8 in 2019 as we feel it is oversold on the chart,” Al Ashry said. Dubai Investments shares have fallen to Dh1.3 from a high of Dh2.2 seen last year. “Dubai Investments may also recover to Dh1.57 by mid-2019, Al Ashry said.
The Abu Dhabi Securities Exchange general index ended 0.05 per cent higher at 4,985.30. “Most of the shares in Abu Dhabi are very stable because of companies are at a fair value. We expect Abu Dhabi index to continue to gain to 5,080,” Al Ashry said. “I expect FAB to approach Dh15.5 and Abu Dhabi Commercial Bank to Dh8.8 during this quarter,” Al Ashry said. ADCB ended 0.12 per cent lower at Dh8.44.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.05 per cent lower at 4,985.30. “I’m bullish on the Tadawul index and it may see a new high of 8,590 later in the month,” Al Ashry said.
Aldrees, Enaya and Saudi Kayan have been the most active shares in Saudi market. Aldrees, which closed at Dh35.10, may touch a new high of 36.30 riyals, Al Ashry said. Insurance company Enaya may recover to 17.10 riyals before the end of this quarter. Enaya closed at 15.75 riyals, up 1,4 per cent. Saudi Kayan closed at 14.08 riyals, and may see further gains to 14.75 riyal in a month. The Muscat MSM 30 index closed 0.50 per cent lower at 4,236.75.