Dubai: Dubai Islamic Bank (DIB) shares surged on Tuesday on stronger-than-expected first quarter results, and that triggered buying in other banks in Abu Dhabi.

DIB shares rose as much as Dh5.22, just 20 fils away from its 52-week high, before closing 1.17 per cent lower at Dh5.21. Traded volume more than doubled to 16 million shares from 30-day average of eight million.

“I think there is a lot more upside in DIB and investors should even consider building fresh positions,” Vrajesh Bhandari, senior portfolio manager with Al Mal Capital said. DIB confirmed that bank’s board meeting considered the potential acquisition of Noor Bank.

The Dubai Financial Market general index closed 0.35 per cent lower at 2,811.09 as Deyaar, Salama Insurance, Emaar Properties witnessed profit-taking, but the downside in the index was restricted because of buying in DIB. Emaar Properties closed 2.19 per cent lower at Dh4.91. Deyaar Properties closed 1.75 per cent lower at Dh0.372.

Emaar Development closed 1 per cent higher at Dh3.90. Air Arabia closed nearly 1 per cent higher at Dh1.03. Gulf Finance House ended 2 per cent lower at Dh1.05.

Dubai Investments closed at Dh1.60, down 0.63 per cent. Emaar Malls closed flat at Dh1.76.

Buying in DIB also triggered interest in banks in Abu Dhabi such as First Abu Dhabi Bank (FAB) and Abu Dhabi Commercial Bank (ADCB). FAB closed 0.72 per cent higher at Dh16.80. ADCB ended at its highest level in 52 weeks at Dh10, up more than a per cent. The Abu Dhabi Securities Exchange general index closed 0.34 per cent higher at 5,404.53.

Saudi Tadawul index closed 0.36 per cent higher at 9,227.93. Saudi Basic Industries Corporation closed 0.16 per cent lower at 124 riyals. Al Rajhi Bank closed 0.37 per cent higher at 75.30 riyals. Dar Alarkan Real Estate Development Co. ended half a per cent higher at 10.90 riyals.

“In Saudi Arabia, we expect fund managers to add fresh positions in the midcap space, where valuations currently are at a substantial discount to the heavyweights,” said Bhandari. The valuation discount is at 30 per cent between large cap and mid-cap stocks. Historically, large cap was always at a premium of 10 per cent relative to mid-cap stocks. The Muscat MSM 30 index closed 0.5 per cent lower at 3,958.08. The Qatar exchange index closed 0.18 per cent lower at 10,382.18. The Kuwait all share index closed 0.46 per cent lower at 5,722.30.