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Indices bounce back after the correction

DUBAI — The UAE stock indices were headed north yesterday after a number of leading stocks reported gains in the range of 3 to 4 per cent. The 38-stock National Bank of Abu Dhabi Index gained 2 per cent (343 points) to close at 17910 points while its DFM counterpart gained 2.25 per cent to close at 1,135 points.

The leading banking sector shares including the Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Bank, National Bank Dubai, Abu Dhabi Islamic Bank and National Bank of Abu Dhabi reported substantial gains. “Although the market is yet to fully recover from the liquidity shortage caused by the DANA Gas IPO, the technical correction seems to have come to an end. Thankfully, all the recent corrections have had shorter cycles and the investors are getting back to the market in full strength,” said an investment analyst.

Trading relatively modest volumes across the two bourses, the UAE market repored Dh1.24 billion turnover yesterday. In over 6,400 deals, the Dubai Financial Market traded 76 million shares worth Dh1.24 billion. The key service sector shares including Emaar and Amlak gained 2.40 per cent and 3 per cent respectively. The Emaar scrip ended 60 fils up at Dh25.60. While Shuaa and Arabtec gained 2.2 per cent and 1.5 per cent respectively, the Tabreed and Union Property shares reported marginal gains.

Although the banking sector traded a modest volume of 4 million shares, all active shares reported more than 2 per cent gain. While the Dubai Islamic Bank gained 70 fils Emirates Bank and National Bank of Dubai scrips gained 3.9 per cent and 2 per cent respectively.

On the Abu Dhabi bourse, the banking sector shares reported across the board gains yesterday with the National Bank of Abu Dhabi scrip gaining Dh 2.45 (4.74 per cent).

The Union National Bank share gained more than 4 per cent while the ADCB and Abu Dhabi Islamic Bank shares posted gains of 30 fils and Dh1.80 respectively.