UAE shares rise ahead of dividend payouts of major banks

Markets Wrap: UAE shares rose yesterday, boosted by banks, as investors bought up shares ahead of dividend payouts by lenders.

National Bank of Abu Dhabi rose 0.9 per cent to close at Dh11.10 a share. Christopher Pike / The National

UAE shares rose yesterday, boosted by banks, as investors bought up shares ahead of dividend payouts by lenders.

National Bank of Abu Dhabi, the second-biggest lender by assets, rose 0.9 per cent to close at Dh11.10 after its board recommended a cash dividend of 35 fils per share and one bonus share for every 10 shares held.

Abu Dhabi Commercial Bank gained 1.1 per cent to Dh3.64 after it boosted its dividend by 5 percentage points to 25 fils per share.

The Abu Dhabi Securities Exchange General Index gained 0.3 per cent to 2,900.79 points.

"Dividends have been in line with expectations, if not higher, showing strong yields in comparison with 2012 distributions," said Marwan Shurrab, the vice president and fund manager at Gulfmena Investments, an asset manager in Dubai. "The market took that positively."

The Dubai Financial Market (DFM) was buoyed by banking stocks, while the broader market fell as investors booked profits, Mr Shurrab said. Lenders hold the largest weighting on the Dubai index.

For every stock that advanced, four stocks declined.

Dubai Islamic Bank gained 0.4 per cent to Dh2.22. Commercial Bank of Dubai rocketed 11.4 per cent to Dh3.40 on little volume as 132,149 shares changed hands.

Property stocks led the declines. Emaar Properties fell 1.6 per cent to Dh4.69. Union Properties fell 1.5 per cent to 44 fils. Drake & Scull International, a contracting company, lost 0.7 per cent to 78 fils.

The DFM General Index added 0.2 per cent to 1,868.74.