Bank stocks keep Dubai Financial Market in the black

UAE banks have made strong progress from the 2008-2009 financial crash and are also paying a healthy dividend yield of 6 to 7 per cent.

Dubai shares, which are now in a bull market, maintained their positive streak yesterday on the back of gains by bank stocks.

The Dubai Financial Market General Index rose 0.6 per cent to 3,191.81, and is up 21.7 per cent from the low reached on January 21.

Sebastien Henin, head of asset management at The National Investor in Abu Dhabi said that markets in the UAE are performing very well, despite the geopolitical challenges and the drop in oil prices.

“We have seen a lot of companies releasing results for the full year and many showed resilience despite the difficult environment during the past 12 months,” Mr Henin said.

He said UAE banks, in particular, have made strong progress from the 2008-2009 financial crash and are also paying a healthy dividend yield of 6 to 7 per cent.

“It makes sense for investors to look at those stocks and take some position,” he added. Key gainers on the DFM yesterday included the contractor Drake & Scull, Emirates NBD and district cooling services provider Tabreed.

Meanwhile, the Abu Dhabi Securities Market General Index closed up 0.3 per cent to 4,313.57, led by the telecoms operator Etisalat and Abu Dhabi Commercial Bank.

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