FAB powers ADX towards 5,000 level

BANK CLOSES 3.32% HIGHER AS ADCB, ADIB AND SIB ALSO ALSO GAIN MORE THAN 1%

The Abu Dhabi index yesterday gained more than 1.5 per cent, jumping to its highest level in 52 weeks, on the back of continued buying in First Abu Dhabi Bank (FAB) shares.

The Abu Dhabi Securities Exchange (ADX) General Index closed at 4,883.54, up 1.61 per cent, after hitting a year-high of 4,895.10.

“The support of 4,750 should hold strong. The index may extend gains towards the given target zone at 5,000,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said.

FAB closed 3.32 per cent higher at Dh14. FAB has been on a gaining streak since it went ex-dividend on March 6, gaining 30 per cent. Other banks like Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank and Sharjah Islamic Bank also rose more than 1 per cent.

ADCB rose 1.27 per cent to close at Dh7.17 while SIB was up 1.64 per cent to end at Dh1.24. Union National Bank closed 0.57 per cent higher at Dh3.54.

The Dubai Financial Market (DFM) General Index closed flat at 2,977.78. Emaar Development ended the session in positive territory, gaining 0.57 per cent to close at Dh5.17, while DP World rose 0.86 per cent to end at $22.25.

Dubai Islamic Bank closed 0.20 per cent lower at Dh5.08. Air Arabia closed 0.93 per cent lower at Dh1.06.

Dubai Investments ended nearly 1 per cent higher at Dh2.05.

“A close over Dh2.06 in Dubai Investments shall be considered bullish, and it may hit Dh2.15 in the near term,” Prakash said.

Traded value, which came in at Dh93 million yesterday, remained on the weaker side.

“Volumes were at a two week low [on Sunday] as investors held on to their positions in anticipation [of] the upcoming financial disclosures of the last quarter,” Essam Kassabieh, senior analyst with Menacorp said in a note.

“With a string of financials to be disclosed this week, low volumes are likely to persist on both indices as investors seek further clarification on firms’ second-quarter performances and the impact that they will have on the market.”