UAE stocks gain amid strong profits

Abu Dhabi: The UAE stocks gained ground yesterday, with both markets reacting cautiously to the excellent results disclosed so far by the listed companies.

In Dubai, the benchmark index gained 0.68 per cent to close at 4,160.25, with only two of the 19 traded shares recording losses.

Emaar Properties advanced slightly by Dh0.1 to Dh12.50 reflecting a positive investor sentiment, with many awaiting the market leader's 2006 results.

"The results disclosed so far have been better than expected, with the banking sector in particular reflecting the strong operational growth of 23 per cent for 2006, and recovering from the bleak performance of the first half of last year," commented Rami Sidani, senior associate partner at Shuaa Capital.

With Dubai Islamic Bank, and Abu Dhabi Commercial Bank results that illustrated the recovery of the banking sector, investor sentiment turned to positive grounds, though cautiousness remains as many leading shares are still to disclose their results.

Liquidity

Such caution is reflected in the diminished value of traded shares in Dubai, with many analysts expecting market's liquidity to relatively pick up once the rest of the leading listed shares announce their results. "This is a very healthy sign, as investors now are focusing on operational profits, rather than rumours, investment gains, or asset revaluation," added Sidani.

The total value of traded shares amounted to Dhs451.79 million.

In Abu Dhabi, the general index recovered 0.38 per cent, to 2,983.64 points, with the banking sector leading the advance, as the sub-index gained 0.96 per cent, on the strong results announced by ADCB growing by more than 50 per cent in the fourth quarter as compared to the third quarter when growth was only five per cent.

In general, expectations are positive for a strong performance for the sector as a whole, with the National Bank of Abu Dhabi expected to announce a record performance for 2006 as well.