Dubai: Abu Dhabi index posted its strongest daily gain since July 2017 to hit its highest level in nearly 30 months due to buying in banking shares, while Dubai index ended in the negative zone.

The Abu Dhabi Securities Exchange general index closed 1.73 per cent higher to 4,688.57, after hitting a high of 4,690.29, its highest level.

“Perhaps, technical indicators are at work, as it crosses the 50-day moving average. The strength clearly driven by First Abu Dhabi Bank, which is now up 21 per cent this year so far, from very attractive valuations,” Vrajesh Bhandari, portfolio manager at Al Mal Capital said.

First Abu Dhabi Bank closed 3.77 per cent higher to Dh12.4. Taqa closed nearly 6 per cent higher to Dh0.9. Abu Dhabi Islamic Bank closed 3.07 per cent higher to Dh4.03.

The Dubai Financial Market General Index closed 0.25 per cent higher to 3,083.37.

Emaar Properties closed 0.53 per cent lower to Dh5.58. Dubai Entertainments closed at Dh0.451, down 0.66 per cent. In other stocks Ajman Bank closed 0.97 per cent higher to Dh1.04. Air Arabia closed 1.69 per cent higher to Dh1.20. Damac Properties closed 3 per cent higher to Dh3.05.

Ithmaar closed more than 3 per cent higher to Dh0.406. Traded value stood at Dh252 million, compared to Dh150 million in the previous session.

“DFM is still appealing despite an investors’ lack of confidence reflected in volumes and index value decrease. From a fundamental standpoint, this drop remainsun explained given the actual state of the economy, the increasing companies’ earnings and growing dividends. The market seems to be lacking short-term catalysts that will help it regain its attractiveness and the investors’appetite,” Menacorp said in a note.

Elsewhere in Saudi Arabia, Tadawul index closed 0.64 per cent higher to 7,921.78, nearing its keenly watched level of 8,000.

Saudi Arabia gaining momentum now with several large caps adding 2 per cent a piece. We see fresh money being allocated to MENA from global investors as we approach the MSCI announcement,” Bhandari said.

The Qatar exchange index closed 0.98 per cent higher to 8,792.91. The Muscat MSM 30 index closed almost flat at 4,798.90.

The Kuwait Stock Exchange index closed 0.6 per cent higher to 6,633.44.