UAE shares up as financial stocks gain

The Abu Dhabi Securities Exchange rose by nearly a full percentage point, while the DFM rose by 0.3 per cent with Bahrain-based Gulf Finance House the top mover.

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Equity indexes in Abu Dhabi and Dubai rose on Monday, with financial stocks prominent among the gainers.

The Abu Dhabi Securities Exchange rose by nearly a full percentage point, at 0.9 per cent higher. Eshraq Properties was the leading pick, up by 8 per cent, with Aldar up by 1.2 per cent. Other gainers were the big banks, with ADCB up by 2.4 per cent and the merger partners FGB up by 2.2 per cent and NBAD gaining 0.2 per cent. As speculation over other merger talks quietened, UNB fell by 1.3 per cent.

“The ADX has lagged other markets, especially the DFM,” said Tariq Qaqish, the managing director of asset management at Al Mal Capital. “The ADX is flat for the year, whereas the DFM is up about 8 per cent. I think investors in Abu Dhabi moved into the banks once they saw the synergies that were possible from the newly merged entity. Eshraq moved so positively, I think, because of speculation in the market.”

The DFM rose by 0.3 per cent with Bahrain-based Gulf Finance House (GFH) the top mover, up 8.3 per cent.

Finance and investment was the only DFM sector to rise on the day, gaining 1.4 per cent.

“There was reasonable activity on the DFM today but mostly in small cap stocks which don’t move the bourse,” said Sanyalak Manibhandu, a senior analyst at NBAD. “It’s a bit quiet, but people are buying dividend stocks for next year. GFH people have been shadowing it for a while like Shua’a – it’s a rebalancing and transformation play.”

On commodities markets Brent crude continued its rise, gaining 1.1 per cent to $55.09 by early evening UAE time.

ascott@thenational.ae

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