An investor monitors stock information on an electronic board at the Stock Exchange in Tunis.
DUBAI: Abu Dhabi’s bourse rose to a fresh 54-month high yesterday as banks extended gains, while strength in international markets bolstered sentiment on most regional bourses.
Abu Dhabi’s First Gulf Bank rose 2.1 percent and National Bank of Abu Dhabi added 1.6 percent. The banks are up 27.2 percent and 33.0 percent in 2013 respectively.
“Abu Dhabi banks are still attractive - there’s no reason why they shouldn’t be trading at similar levels to other regional banks,” said Amer Khan, fund manager at Shuaa Asset Management, saying that in terms of price-to-book ratios, there was room for further gains. Dubai’s benchmark climbed 0.3 percent to a fresh 42-month high. Mid-caps led gains; Air Arabia rose 2.8 percent and Dubai Islamic Bank added 2.1 percent.
Dubai Islamic has completed a share swap with mortgage lender Tamweel, in which it provided 10 new shares in the bank for every 18 of Tamweel’s, according to a bourse statement on Sunday. Tamweel slipped 1.6 percent.
In Kuwait, the measure advanced 0.8 percent to its highest finish since October 2009. Investors have been committing more cash to local stocks since a stand-off between parliament and the government abated following parliamentary elections in December.
“The increase in value traded should serve to induce more confidence in the market and add to the stimulants fuelling the rally,” said Fouad Darwish, head of brokerage services at Global Investment House.
In Saudi Arabia, the index shed 0.4 percent, down from Saturday’s four-week high. The banking sub-index dipped 0.4 percent, while investors booked recent gains in mid-caps; the retail index fell 1.3 percent and insurance stocks shed 1.1 percent.
Oman’s benchmark added 0.2 percent. Large-cap Bank Muscat rose 0.5 percent on hopes that the lender may recover some of the losses from a cyber bank heist, which cost it nearly $40m in provisions; it said yesterday that it was considering its options to recover the money.
Elsewhere, large-caps helped Egypt’s bourse hit a 10-week high, advancing 0.8 percent. Telecom Egypt and Commercial International Bank gained 1.6 and 1.1 percent respectively.
Reuters
