Sharp rise spurs bourse
A sharp, unexplained rise in the share price of one of the country's biggest lenders helped lift Abu Dhabi stocks yesterday, as regional bourses shook off negative global indicators. The Abu Dhabi Securities Exchange General Index rose 0.8 per cent to 2,795.38. Aldar Properties closed up 3.4 per cent to Dh3.91, while Abu Dhabi Commercial Bank, the nation's third largest lender by assets, climbed 8 per cent to Dh1.89 on buying interest from retail investors.
"There is no guidance from the bank to explain why the shares have behaved they way they did," said Ali Khan, the general manager at Arqaam Capital in Dubai. "We have to put it down to retail buyers' speculation as volumes were not significantly high." Sorouh Real Estate also rose 1.3 per cent, to Dh2.32, and First Gulf Bank added 1.1 per cent, to Dh18.35, to help the index cement its gains. Global markets were rattled by Beijing's move to tighten monetary policy and investor scepticism about the Greek bailout. But the effect here was minimal as the region's correlation with international markets appears to be weakening.
"Markets here are mostly driven by local catalysts," Mr Khan said. The Dubai Financial Market General Index added 0.7 per cent to 1,736.61, remaining above the key support level of 1,700 points. Emaar Properties rose 1.6 per cent to Dh3.92 while Arabtec added 2.1 per cent to Dh2.49. Elsewhere, Qatar shares rose 0.2 per cent and Muscat advanced marginally. The Kuwait index lost 0.6 per cent, Bahrain closed marginally down and the Saudi Tadawul retreated 0.2 per cent.
Published: May 3, 2010 04:00 AM