Wednesday 21 October 2020

UAE bourse gains $2bn on bank merger reports

ABU DHABI, September 4, 2018

The UAE stock exchanges gained Dh7.5 billion ($2.04 billion) in market cap on Tuesday following reports purporting initial negotiations on potential mergers between Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank.

The shares of the ADX-listed ADCB and Union National Bank therefore closed high at Dh8 and Dh4.34 respectively, following robust demand by investment agencies and individuals, reported state news agency Wam.

The development created positive sentiments that pushed ADX General Index high by 0.94 per cent to 4983 points, with DFM following suit by 0.27 per cent up to close at 2837 points.

The reported potential merger, if materialised, would be the third of its kind across the country over the past 10 years after the merger of NBAD and First Gulf Bank into First Abu Dhabi Bank and the merger of the Emirates Bank International and the National Bank of Dubai into Emirates NBD, stated the report.

The move, coupled with a noticeable momentum provided by the property and energy sectors, strengthened the market gains of today's session, during which Etisalat jumped to Dh16.76, with Taqa Abu Dhabi National Energy Company up 6.3 per cent to Dh1.18.

At DFM, Emirates NBD climbed to Dh9.30 followed by Dubai Islamic Bank to Dh5.15, with Emaar leading the growth at the real estate sector at Dh5.40, it added.

Tags: Abu Dhabi Commercial Bank | Union National Bank | UAE bourse | bank merger | Al Hilal Bank. |

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