ADCB hits 32-month high, UAE markets up
Dubai, June 15, 2011
Abu Dhabi Commercial Bank hit a near 32-month high after it said it will sell its shares in Malaysian lender RHB Capital, helping lift the index to a five-month high.
ADCB, up 1.9 percent, will sign a deal on Friday with Aabar Investments. Abu Dhabi's benchmark rose 1.2 percent to 2,744 points, its highest close since January 10.
"ADX (is seeing a) nice move backed by the strong performance of the banking sector," said Musa Haddad, head of Mena equity desk at National Bank of Abu Dhabi.
"The index managed to break above its golden ratio of 61.8 percent retracement from its Peak in October 2010 to its low in March 2011, which is considered a very positive signal for more upside," he added.
Technical indicators show that investors are now more willing to sell lower and buyers are willing to buy at higher levels, Haddad said.
Dubai's index gained 2.2 percent to 1,602 points, a five-week high. Emaar Properties climbed 3.2 percent and Arabtec rose 3 percent. Dubai Financial Market jumped 5 percent.
Heavyweight Emirates NBD surged 5.5 percent, but volumes are muted.
In Qatar, bargain hunters lifted the benchmark to its highest close in June, up 0.9 percent to 8,386 points. The index fell to a three-month low last week.
Qatar National Bank rose 2 percent and Qatar Islamic Bank was up 1 percent.
Kuwait's Zain rose after the telecoms carrier said it expected due diligence on its $950 million sale of a quarter-stake in affiliate Zain Saudi to be completed by the end of August.
Zain gained 1.9 percent, helping Kuwait's index rise for a third day, climbing 0.3 percent to 6,346 points
Oman's index ended a four-day winning streak, slipping 0.2 percent to 6,052 points as losers outnumber gainers eight to five.
Petrochemical stocks lifted Saudi Arabia's index as investors were buoyed by upbeat performance in US markets and high oil prices.
Saudi benchmark rose 0.2 percent to 6,582 points, up in three of past five sessions. -Reuters