(MENAFN- Khaleej Times) UAE bourses continued to rally on Tuesday as shares in banking and real estate sectors recovered following media reports that the emirate's banks have overcome the global liquidity crisis and resumed lending.
Emirates NBD lifted Dubai Financial Market to its highest close in a week, while Abu Dhabi Securities Exchange climbed for a fifth day as Abu Dhabi Commercial Bank and National Bank of Abu Dhabi surged.
Shares with a total value of Dh310.2 million ($84.5 million) were traded on the Dubai stock market compared with a 50-day average of Dh493.3 million. In Abu Dhabi, trading values were 4.2 per cent lower than the average at Dh172 million.
"The low trading volumes and the lack of a fundamental positive outlook signals the rally in banking stocks may be short lived," said Chamel Fahmy, senior regional sales trader at Beltone Securities Brokerage in Dubai.
The Dubai Financial Market's General Index gained 1.46 per cent to 1,648.46 points, closing at its highest since January 21.
Emirates NBD PJSC, the country's largest lender, continued to rise on a second consecutive day and jumped 4.6 per cent to Dh2.49 per cent.
Emaar Properties PJSC, the Middle East and Africa's biggest developer by assets, climbed 2.84 per cent. Its shares rose to its highest in almost two weeks and closed at Dh3.26. The stock is down 16 per cent so
far this year.
Dubai Financial Market advanced 3.14 per cent to Dh1.64.
"Most Dubai companies have delayed reporting results, so there is rising speculation in the market (over what these might be)," said Ahmed Hamdi, senior relationship manager at Prime Emirates.
"Some people believe (profits) will be higher than expected and so that's probably why we're seeing a rally."
Abu Dhabi Securities Exchange's general Index's rose 0.97 per cent to 2,690.87 points, a 19-day high, on strong recovery in banking sector shares. The exchange's banking index climbed 1.2 per cent.
Abu Dhabi Commercial Bank climbed 7.6 per cent, taking its gains to 40 per cent since it touched a 7-1/2 year intra-day low on Wednesday. The day before, the lender reported a fourth quarter loss of Dh1.2 billion on record provisions, but analysts said investors are now reacting positively because ADCB's results have reduced uncertainty over the bank.
Union National Bank PJSC rose two per cent to Dh3.05, bringing the seven-day surge to 13 per cent. It's the stock's longest winning streak since April 2008. The Abu Dhabi based-bank said on January 31 its fourth-quarter profit climbed to Dh222.1 million from Dh65.8 million in the year-earlier period.
National Bank of Abu Dhabi also rose 1.3 per cent, rising for a second day since reporting a fall in quarterly profit, while First Gulf Bank
up 0.3 per cent.
"Stocks that have already announced good dividends, especially cash ones, will probably continue to rise," said Ahmed Hamdi, Senior relationship manager at
Prime Emirates.
In regional markets, Saudi Arabia's Tadawul All Share Index closed 0.2 per cent higher at 6,256.48 points in Riyadh. Qatar's Doha Securities Market Index increased 0.5 per cent and the Bahrain All Share Index decreased less than 0.1 per cent. Oman's Muscat Securities Market 30 Index lost 0.5 per cent, while the Kuwait Stock Exchange Index added less than 0.1 per cent.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.