By- Elsayed Solyman
Shares on the Dubai bourse exceeded 5000pts barrier for first time since 2008 Tuesday, buoyed by shares in Emaar and Dubai Islamic Bank, while Abu Dhabi shares retreated in a thin trade.
The Dubai benchmark stock index soared 0.7% to 5018.98 points, a fresh six -year high, since August 2008 when property crunch hit the emirate.
For the moment, Dubai stocks are the fastest rising in the world in 2014, however, the DFMGI is still well short of its 8,569 high in the first quarter of 2006.
“Emaar and Dubai Islamic Bank contributed most to the market’s rally Tuesday. Speculations on possible increase in Emaar’s dividends payouts have attracted investors to inject more cash in this heavyweight stock,” said Nabil Hyder, head of gulf research in Al madina Investment.
Shares in the developer soared 1.42%, as its general meeting will will discuss the proposal of the Board of Directors regarding distribution of dividends to the shareholders amounting to 15% of the share capital being AED 15 fils per share as cash dividend, and 10 per cent bonus shares of the share capital of the company for the year 2013.
The company posted its financial result for the first quarter of 2014recordin a net profit of AED 863 million (US$ 235 million) during the first quarter (January to March) of 2014.
This is 55% higher than the first quarter 2013 net profit of AED 556 million (US$ 151 million) and 14 per cent higher than the fourth quarter (September to December) 2013 net profit of AED 756 million.
The revenue for Q1 2014 is AED 2.256 billion, 7% higher than Q1 2013 revenue of AED 2.110 billion.
“Dubai Islamic Bank served as another boost for the index Tuesday, after EFG Hermes issued a report expecting a robust growth for the lender in 2014,” said Nedal Khouly, head of gulf research in Nemma Investment.
EFG Hermes issued a report on DIB Tuesday, expecting loans to grow in a high pace in 2014.
Shares in Dubai Islamic Bank soared 4.28%, lifting the banking sector index 2.32%, while Emirates NBD ticked up 0.55%.
Mazaya was the market mover Tuesday, soaring 14.53%, while Agility was the worst, shedding 10%.
Deyyar was the most active by volume, while Arabtec was the most active by value.
“We could see the market extending rally Wednesday, buoyed by blue-chips stocks in the real estate sector,” Khouly added.
Turnover hit AED 2.69 billion, while volume stood at 864.5 million shares.
Elsewhere, shares on the Abu Dhabi bourse closed in the negative territory, hit by a smooth profit-taking streak on most of blue-chips stocks in the banking sector.
ADX, the main benchmark stock index, dipped 0.004% or 2.05 points to 5189.77pts.
“First Gulf Bank was the main drag Tuesday. Though most of other large-caps stocks kept rally alive, but their gains weren’t enough to prop up the market’s index,” said Ramy Rashad, a senior technical analyst at Mubasher Financial.
Shares in First Gulf Bank, the biggest relative weight in the index lost 0.86%, dragging the banking sector index 0.26% lower, while shares in Abu Dhabi Commercial Bank surged 0.63%.
The real estate sector index soared 1.76% on the back of Aldar, which advanced 2.39%.
“We could see the market resuming rally Wednesday, bolstered by shares in the banking sector,” Rashad added.
Turnover stood at AED 993.3 million, while volume hit 321.09 million shares.
