Dubai: Emirates NBD shares jumped more than 6 per cent on Wednesday due to gains made by re-negotiating the buyout price of Denizbank, continuing a revival in sentiment on Dubai bourse.
Emirates NBD shares closed 6.05 per cent higher to be at Dh11.40, and was the most-active stock in trade, contributing to 28 per cent of the total value traded of Dh342 million on the bourse. The Dubai Financial Market general index closed 1.12 per cent higher at 2,760.48, extending gains for a third straight session.
Dubai bourse has been supported by buying in stocks such as Emaar Properties and Emirates NBD.
The revised restated sale and purchase agreement suggests the pricing has been renegotiated lower by more than 15 per cent — pretty much closing in the impact of the 20 per cent devaluation of the Turkish Lira,” Vrajesh Bhandari, senior portfolio analyst with Al Mal Capital said.
“The change in Foreign ownership limit and resulting increase in MSCI/FTSE indices should drive in substantial flows in the stock. We see a lot more upside,” Bhandari added. First Abu Dhabi Bank Securities has a target of Dh12 and higher on the stock, meaning an upside of 5 per cent on the current value.
In other shares, Dubai Islamic Bank closed 0.41 per cent higher at Dh4.92. Emaar Properties witnessed profit-taking from its high of Dh5.23.
Emaar Properties closed 1.36 per cent lower at Dh5.06.
Dubai bourse has been supported by buying in stocks such as Emaar Properties and Emirates NBD. The index has gained more than 6.5 per cent in the year so far.
“It is difficult to say what would happen in the near term. In the long run, we are believers of the Dubai story and find current valuation levels of high quality companies to be attractive,” Bhandari said.
The Abu Dhabi Securities Exchange general index closed 0.09 per cent lower at 5,048.98. Elsewhere in the Gulf, Saudi Tadawul index closed 0.57 per cent higher at 8,985.48.