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Abu Dhabi shares produce first gain in four sessions; Dubai resumes rally

Abu Dhabi shares produce first gain in four sessions; Dubai resumes rally

Stock markets in the United Arab Emirates resumed rally Wednesday, bolstered by blue-chips stocks in banking and property sector in both Dubai and Abu Dhabi.

Shares on the Abu Dhabi bourse made its first gain in four sessions since the beginning of this week, as investors were pumping new cash ahead of fresh catalysts in the market.

ADX, the main benchmark stock index, surged 0.9% to 5131.62%, but is still off its multi-year, the index touched last Thursday.

“Banks stocks served as the main supporter to Abu Dhabi’s index Wednesday, after investors were done with profit-taking from these stocks, especially First Gulf Bank, and National Bank of Abu Dhabi,” said Nabil Hyder, head of gulf research in Al madina Investment.

Shares in National Bank of Abu Dhabi and First Gulf Bank gained 2.76% and 0.57% in a row, lifting the banking sector index 0.73%.

“We have noticed most of market’s value concentrated in real estate sector Wednesday, especially Eshraq and Aldar,” he added.

The real estate sector index soared 1.75%, with Aldar advancing 1.95%, while Rak Properties closed unchanged.

Shares in developer Eshraq rallied 5.56%, topping the most active by value and volume lists Wednesday.

Heavyweight Etisalat, the second biggest relative weight in the index, closed flat.

“We could the market extending gains Thursday, buoyed by strong showing of blue-chips stocks,” said Ramy Rashad, a senior technical analyst at Mubasher Financial.

Turnover hit AED 1.42 billion, while volume stood at 508.13 million shares.

Elsewhere, shares on the Dubai bourse resumed rally Wednesday, receiving boost from shares in Dubai Islamic Bank, as the lender increased foreign ownership limit to 25%.

The Dubai benchmark stock index, DFMGI, ticked up 0.9% to 4728.38 points, boosted by shares in Emaar, Arabtec and Dubai Islamic Bank.

“Blue-chips stocks supported again Dubai’s index to resume its rally Wednesday, especially Dubai Islamic Bank, which served as the main supporter to the index,” said Nedal Khouly, head of gulf research in Nemma Investment.

Shares in Dubai Islamic Bank soared 2.6%. The stock’s hike came in the wake of increasing the foreign ownership in the bank by 10%, which will boost foreign liquidity.

The banking sector index advanced 1.07% on the back of DIB, while Emirates NBD closed flat.

“Emaar and Arabtec served as another boost reason to the index Wednesday. We could see the market extending rally Thursday on these stocks,” Khouly added.

The real estate sector index climbed 0.49%, with heavyweights Arabtec and Emaar gaining 1.46% and 0.49% respectively.

Turnover hit AED 1.04 billion, while volume came in 336.9 million shares.