Dubai Islamic Bank lifts DFM to multi-month high

Positive results at Dubai Islamic Bank helped to push Dubai’s bourse over the 3,900 mark for the first time since mid-February as retail investors returned to the stock markets.

The Dubai Financial Market General Index climbed 2.95 per cent to 3,941.77 on Wednesday, its highest level for two months and just shy of its highest level of the year.

“Negative expectations for the first quarter have faded somewhat, and retail investors have rediscovered their enthusiasm after two to three months of quieter times,” said Julian Bruce, the head of institutional trading at EFG Hermes in Dubai.

“The index has pushed through the 3,900 mark, which was seen as quite a tough nut to crack in terms of resistance, and now people are looking at 4,200 levels.”

DIB was one of the main gainers of the day after beating analyst expectations with a 34 per cent rise in first quarter profits. The bank’s shares were up 5.3 per cent at Dh6.75, their highest level for five weeks.

Ggico and Salama were the other gainers, rising 9.89 and 8.26 per cent respectively.

Eshraq Properties led gains in the capital, surging by 14.44 per cent to Dh1.03, the stock’s highest level since November.

The Abu Dhabi Securities Exchange General Index closed 0.68 per cent higher at 4,622.3.

United Arab Bank rose 5.26 per cent to Dh6 following reports from Bloomberg that the bank had hired JP Morgan and HSBC for a US$300 million to $350m Tier 1 bond.

Follow The National’s Business section on Twitter


Share This Post