Banking sector results lifts Dubai bourse

Markets Update: Banking sectors boosts Dubai market but in Abu Dhabi the second biggest property developer lost the most in a month after posting a fourth quarter loss - with video.

Sorouh Real Estate, Abu Dhabi's second-largest developer by market value, dropped the most in a month after reporting a fourth-quarter loss.

The company posted a fourth quarter loss of Dh199 million ($54 million) in the fourth quarter, after setting aside money to cover provisions and impairments, a trend that has hit other property developers in the region.

Its shares fell 4.4 per cent at the open, to Dh1.31 in Abu Dhabi.

But in Dubai, Drake & Scull International added the most as its 2 billion Saudi riyal contract win from Saudi Aramco attracted investor buying.

The shares gained 5.5 per cent to Dh1.15, the highest intraday level since October 2009.

Financial results from the banking sector also provided a fillip to the bourse.

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Union National Bank posted a 16.6 per cent rise in net income for 2010, compared with the year earlier, sending the shares up 2.44 per cent to Dh3.36.

Traders will be keeping a close eye on Abu Dhabi Islamic Bank, which is due to report later today.

The capital's second biggest Islamic bank edged 1.63 per cent higher to Dh3.11.

The Dubai Financial Market (DFM) General Index made marginal gains this morning, as it rose 0.5 per cent to 1,613.14 points, while the Abu Dhabi Securities Exchange slipped 0.2 per cent to 2,721.7 points.

In Asia, news that President Hosni Mubarak had stepped down buoyed the markets and is expected to offer positive impetus to the US markets due to open later.