ADCB hits high, bucks weak trend

LENDER TOUCHED A HIGH OF DH7.99 NEARING ITS SEPTEMBER 4 HIGH OF DH8.15

Abu Dhabi Commercial Bank (ADCB) witnessed renewed buying yesterday, attempting to reclaim its early September high, when the bank announced a possible merger with other smaller banks.

ADCB touched a high of Dh7.99, nearing its September 4 high of Dh8.15, before closing 3.50 per cent higher at Dh7.97. However, the Abu Dhabi Securities Exchange general index closed 0.32 per cent lower at 4,855.94.

“The trend is up in ADCB and the stock may register another bullish break over the previous high at Dh8.10 and target Dh8.50 in the near term,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities (FABS) said. FABS had a technical buy at Dh7.5 on October 28.

“In Abu Dhabi, investors are shuffling small positions around as low volumes prove to be getting weaker every day,” Essam Kassabieh, senior analyst with Menacorp said.

Buying was seen in most of the stocks in Dubai. The Dubai Financial Market General index closed 1 per cent higher to be at 2,743.54.

Emaar Properties closed more than 2 per cent higher at Dh4.90. Dubai Investments closed 1.9 per cent higher at Dh1.61. DP World closed 2.71 per cent lower at $18.34.

Dubai Islamic Bank closed 0.38 per cent lower at Dh5.18. The real estate companies have been on a downside, and that has resulted in the Dubai index losing a fifth of its value.

“Real Estate is dragging the Dubai index as several players pose concerns over their cash flow which in turn creates questions over dividend yields,” Kassabieh said.

Saudi Arabia’s Tadawul index closed 0.35 per cent lower at 7,820.05. Alinma Bank was 1.28 per cent lower at Dh21.64, while Saudi Basic Industries Corp closed 0.47 per cent lower at 126.60 riyals.

Elsewhere in the Gulf, the Muscat MSM 30 index closed 0.18 per cent lower at 4,420.67. The Qatar exchange index closed 0.28 per cent lower at 10,163.41. The Kuwait all share index closed 0.15 per cent higher at 5,224.69.