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Dubai, Abu Dhabi bourses rally

DUBAI —The Dubai Islamic Bank and the Union National Bank PJSC yesterday helped to maintain a rally of the stocks in the United Arab Emirates, with the total value of shares traded reaching Dh1.017 billion ($277 million).

Analysts said that without negative news and heavy speculation, the market's upward swing will continue. Being the world's oldest commercial Islamic bank, Dubai Islamic added 2.2 per cent to Dh7.61 while the state-controlled lender Union National Bank rallied 1.9 per cent to Dh6.52.

The Dubai Financial Market General Index rose 1.2 per cent to 3,876.31 points while the Abu Dhabi Securities Market Index advanced 0.9 per cent on Dh172.62 million ($47 million) worth of trades to 2,998 points.

The heavy buying of Dubai market's DFM stock, which rose five per cent, brought about yesterday's gain. Aramex shares rose 6.5 per cent. Dana Gas was the most traded in the Abu Dhabi market and rose 3.6 per cent. Ras Al Khaimah Cement Co. (RAKCC UH), on the other hand, decreased 1.1 per cent to Dh1.89. Lower natural gas supplies have made this UAE cement producer to purchase more expensive liquid fuels, prompting its first-quarter net income to drop 23 per cent to Dh27.6 million.

Bloomberg adds: Shares in Saudi Arabia fell, paced by banks including Al Rajhi Bank, the kingdom's biggest publicly traded lender by market value, and Saudi British Bank. Gauges in the United Arab Emirates advanced. The Tadawul All Share Index lost 0.9 percent to 7756.49 at

12:32 p.m. in Riyadh, bringing the decline for the year to 2.2 per cent. Shares of Al Rajhi Bank and Saudi British Bank retreated

after the companies reported a drop in first-quarter earning on reduced income from trading shares and helping companies with

initial share sales. The kingdom's benchmark lost more than half its value last year, the biggest decline among equity benchmark

tracked by Bloomberg, after doubling in 2005. Al Rajhi slipped 2.3 per cent to 86.5 riyals. The bank said first-quarter profit fell 10 percent to 1.57 billion riyals ($419 million) from a year earlier. Saudi British Bank lost 1.2 per cent to 100.75 riyals. The bank, which is partially owned by HSBC Holdings Plc, said first- quarter profit decreased 38 percent to 616 million riyals on

lower fees from its brokerage business. Bank Al Jazira slumped 4.5 per cent to 121 riyals. The commercial lender said first-quarter profit retreated 56 per cent to 302 million riyals as share broking on Saudi Arabia's stock market declined.