Banks push UAE indexes

A surprise announcement from Dubai Investment Bank that it will increase its dividend payout helped take the DFX higher yesterday.

The Dubai index closed 0.74 per cent higher to 1,655.50. Nikhil Monteiro / Reuters

A surprise announcement from Dubai Islamic Bank (DIB) that it will increase its dividend payout helped take the main Dubai bourse higher yesterday.

Investors reacted well to a stock exchange release from DIB that it would nudge up its dividend to 12.5 per cent from the 10 per cent it announced on March 1. Shares in the Islamic lender closed up 1.37 per cent to Dh2.22.

Both the Dubai Financial Market General Index and the Abu Dhabi Securities Exchange General Index made their biggest one-day gains for a week.

The Dubai index closed 0.74 per cent higher to 1,655.50. The Abu Dhabi index ended the day up 0.26 per cent to 2,593.25.

Gains on the capital's bourse were led by the banking sector, with First Gulf Bank, Union National Bank and Abu Dhabi Commercial Bankamong the top performers. Haissam Arabi, the chief executive at Gulfmena Investments, said the banks' movement was a good sign ahead of performance figures for the first three months of the year.

"The banking sector drove the [Abu Dhabi exchange] today," Mr Arabi said. "People like to reposition before the first quarter results."

On the Dubai index, 19 stocks gained and seven fell. The exchange's rise was a technical rebound, Mr Arabi said.

"We are still very much in the consolidation phase on the Dubai exchange]. Trading is within a very narrow range. An up day is not indicative of another up but it's the same with the downs. This is … a good sign of a bull market."

The Nasdaq Dubai closed yesterday at 1,656.83, up 0.85 per cent. In Saudi Arabia, the Tadawul All-Share Index closed up 0.29 per cent at 7,540.27.

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