Abu Dhabi Commercial Bank stocks climb ahead of results

Markets Wrap: Traders are on standby for the first results from the first quarter due later this month but bellwether banking and property stocks led the way.

Abu Dhabi Commercial Bank climbed to its highest point since September 2009 as traders booked positions in bellwether banking stocks ahead of a better than expected first round of results.

ADCB rose 3.2 per cent to Dh2.6 on the Abu Dhabi market, the most in 18 months, and was followed by other heavyweight banking and property stocks.

National Bank of Abu Dhabi, the second largest lender in the UAE by assets advanced 1.6 per cent to Dh9.9, while Deyaar Development and Emirates NBD added 0.4 per cent to 241 fils and 0.3 per cent to Dh3.30 respectively on Dubai's market.

"We're waiting for results from banks in particular," said Fadi al Said, a senior fund manager at ING Investment Management in Dubai. Provisions are expected to have reached their peak for banks, leading to a better round of first quarter results this year. "The UAE is always a bit late with results though, so it won't be until the third or fourth week [of April]".

He said the latest central bank data showed "encouraging improvement" in lenders' balance sheet.

Dubai's main bourse, the Dubai Financial Market finished 0.4 per cent lower at 1,548.67 points and the Abu Dhabi Securities Exchange slipped 0.3 per cent at 2,601.35 points.

But uncertainty over when geopolitical unrest in the MENA will end and what the economic implications could be for the region will most likely result in a volatile market in the short to medium term, said investment bank Rasmala in a note to investors.

Elsewhere in the market: Kuwaiti stocks closed 0.5 per cent higher at 6301.10 points; Doha's market ended flat at 8460.63 points; Muscat's market advanced 0.7 per cent at 6269.36 points; and Bahraini shares closed down 0.2 per cent at 1414.77 points. Saudi Arabia's Tadawul traded 0.3 per cent down at 6595.67; while Egypt's market reversed yesterday's gains to end 1.1 per cent lower at 5,498.11 points.

Published: April 4, 2011 04:00 AM

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