Dubai: First Abu Dhabi Bank (FAB) staged a further recovery on Thursday even after going ex-dividend a few ago, indicating strong undercurrent on the counter.
FAB, which was the most-active stock in trade, closed 1.34 per cent higher at Dh15.18. The lender accounted for 32 per cent of the total traded value of Dh218 million.
The Abu Dhabi Securities Exchange general index closed 0.57 per cent higher at 5,127.45. Etisalat shares closed flat at Dh16.90 after the company disclosed a steady dividend.
In Dubai, Emaar Properties fell due to lower than expected dividend. “Emaar Properties disappointed investors with a lower than expected dividend with a yield close to 3 per cent. Traders eyeing Emaar will look towards its development business which proven to be more lucrative in terms of dividend returns,” Issam Kassabieh, Senior Financial Analyst at Menacorp said. Expect sideways to down range with support seen at Dh4.55/4.40 in Emaar Properties, according to Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities. Weak Emaar shares are expected to weigh on other real estate shares, analysts said.
“Dubai Investments also retreated (on Wednesday) despite proving its ability to generate a superior dividend yield for investors,” Kassabieh said. Dubai Investments closed flat at Dh1.4.
Gulf Finance House, which will go ex-dividend on Sunday, closed 1.35 per cent higher at Dh0.977. Emirates NBD rose after the bank said it will seek to list Network International’s shares on the premium segment of London Stock Exchange (LSE).
“Following the Fed’s decision to not propose any rate hikes this year, banks could recover some of their lost margins this year with a better focus on boosting loan books for a higher growth,” Kassabieh said.
The Dubai Financial Market general index closed 0.57 per cent lower at 2,628.74. In other shares, DP World closed 1.88 per cent higher at $16.30.
Dubai Islamic Bank closed 0.61 per cent lower at Dh4.87.
Elsewhere in the Gulf, the Saudi Tadawul index was at 8,693.39, up 0.61 per cent.
