Merger talk continues to lift ADX index
UNB’S SHARE PRICE JUMPED 4.82% AND IT WAS THE MOST ACTIVELY TRADED ON ADX
In Dubai, trade values saw an improvement, rising to Dh459.6 million, with 29 per cent of that going to Salama Insurance.
Abu Dhabi’s main index jumped 1.39 per cent yesterday, driven by gains by banking stocks, which continued to rise on news of a possible merger.
The Abu Dhabi Securities Exchange (ADX) general index ended at 4,986.28 as it continued to flirt with the keenly watched 5,000 level, which was touched last week during intra-day trading.
The rise was supported by buying activity in Abu Dhabi Commercial Bank (ADCB) and Union National Bank (UNB), after they said last week they were in early talks for a possible merger.
Yesterday, UNB’s share price jumped 4.82 per cent and it was the most actively traded on ADX, while ADCB’s rose 2.21 per cent. First Abu Dhabi Bank (FAB) also gained 3.23 per cent.
Catalyst
“It’s a continuation of the trend that we’ve seen since the start of the year where the banking sector continues to perform [well], and the recent news of consolidation within the banking sector acting as a catalyst to unlock value within the sector, especially so in a rising interest rate environment,” said Saleem Khokhar, head of equities at FAB’s asset management group.
Meanwhile, in Dubai, the main index was down 15.4 per cent year-to-date. The Dubai Financial Market (DFM) index yesterday ended 0.24 per cent higher at 2,849.41 as it continued to move sideways.
Trade values saw an improvement, though, rising to Dh459.6 million, with 29 per cent of that going to Salama Insurance Company whose share prices jumped 12 per cent. Salama led gains on DFM and was the most actively traded stock.
Deyaar gained 5.92 per cent, as Emaar inched up 0.4 per cent and Dubai Islamic Bank rose 0.19 per cent.