Abu Dhabi index closing to 5-year high

Abu Dhabi Index

Led by real estate and banking stocks, Abu Dhabi index rose moderately yesterday after a day of decline, its highest close since October 2008. The benchmark gained 0.76 per cent to end at 3599.29.

Aldar Properties climbed 2.29 per cent to Dh2.23 and Sorouh Real Estate was up 1.12 per cent to Dh2.72.

Among the lenders, First Gulf Bank rose 1.32 per cent to Dh15.30 and Abu Dhabi Commercial Bank advanced 0.40 per cent to Dh5. National Bank of Abu Dhabi, UAE’s biggest lender by assets, remained unchanged at Dh12.

Etisalat, the biggest telecom company in the UAE, increased 0.42 per cent to end at Dh11.85.

In Dubai, expectedly, Emaar Properties, the biggest real estate firm in the UAE, fell 1.70 per cent to Dh5.79 after the Indian government accused its local joint venture Emaar-MGF for allegedly violating foreign exchange rules and slapping a Rs86 billion (Dh5.6 billion) penalty.

Cairo-based investment bank EFH-Hermes, in a note on Wednesday, said that the Emaar’s stake in its Indian associate is valued at approximately Dh2.4 billion and has an additional exposure to Emaar MGF through shareholder loans of Dh2.75 billion as at end the first quarter of 2013.

The share price of Arabtec jumped 3.33 per cent to Dh 2.17 after the contractor announced to the exchange that it won a new Dh810 million contract to build a new tower that would include a five star hotel and serviced apartment in Dubai.

Snapping two days of decline, the DFM General Index rose 0.22 per cent to 2421.64. DFM, the Gulf’s only bourse that is listed, continued its uptrend, advancing 3.57 to Dh2.03. Dubai Islamic Bank, Dubai Investments and Drake and Scull were the other gainers.

— With inputs from Reuters