UAE stocks advanced on Sunday as investors judged a sharp drop on Thursday overdone and confidence was boosted by a PMI report showing that non-oil business grew in January at the highest rate in six months.
FGB, the Abu Dhabi-based lender, and Etisalat, the mobile phone operator, led gains in Abu Dhabi, while Dubai Islamic Bank and Emaar Properties underpinned the rise in Dubai.
FGB gained 1.19 per cent, Etisalat 1.14 per cent, DIB 3.9 per cent and Emaar 0.69 per cent.
The Abu Dhabi Securities Market Index, the emirate’s benchmark equities gauge, added 43.8 points, or 0.99 per cent, to 4,490.01 while the Dubai Financial Market General Index increased 24.1 points, or 0.67 per cent, to 3,647.91. The indexes had dropped 1.77 per cent and 0.82 per cent on Thursday amid disappointment in dividends proposed by a number of companies and banks for 2016.
“I see the UAE PMI as providing some support,” said Sanyalaksna Manibhandu, the head of research at NBAD Securities.
“More important, I feel, is the realisation on the part of traders of the overreaction late last week to some of the distribution levels being recommended by the management of certain banks. FGB and DIB stocks trade on high cash dividend yields, so their leading the rebound today is not a surprise.”
The latest purchasing managers index (PMI) data released on Sunday showed that a rise in new orders, higher output and improved demand from overseas helped UAE non-oil companies to grow in January. The Emirates NBD/IHS Markit PMI rose to 55.3 for last month, up from 55.0 in December.
mkassem@thenational.ae
Follow The National's Business section on Twitter
