Emaar and FGB Lift Bourses

DUBAI — UAE shares bucked the regional trend on Sunday and advanced, led by Emaar Properties in Dubai and First Gulf Bank in Abu Dhabi.

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By Abdul Basit (With inputs from Agencies)

Published: Mon 26 Oct 2009, 11:14 PM

Last updated: Sun 5 Apr 2015, 9:57 PM

Four Gulf Arab markets finished lower on Sunday amid low volumes and lower-than-expected third quarter earnings. In Dubai, real estate heavyweight Emaar Properties advanced on the back of a surge in third quarter operating profit reported last week, helping lift the Dubai Financial Market, or DFM.

Emaar rose 1.3 per cent to Dh4.67 after the company reported last week a 53 per cent increase in its third quarter operating profit. Among other real estate stocks, Arabtec and Union Properties also jumped 0.6 and 1 per cent respectively.

The DFM benchmark index rose by 19 points, or 0.85 per cent, to 2,263 points while Abu Dhabi Securities Market, or ADX, index increased by 27.88 points, or 0.89 per cent, to 3,147.44 points on Sunday.

“The third quarter result is the main reason for the bounce back in interest in Emaar,” Beltone Financial regional senior sales trader Chamel Sahmy said.

“Diversification has proven positive for Emaar...and it might continue to post solid figures in Q4,” Sahmy added. Emaar reported a 53 per cent rise in third quarter net operating profit late on Thursday.

In Abu Dhabi, First Gulf Bank, or FGB, the second largest lender on the Abu Dhabi index by market capitalisation, jumped after announcing strong third quarter earnings on Wednesday. The bank’s shares rose 3.27 per cent to Dh19, helping nudge the benchmark higher.

On Friday, Credit Suisse said it would retain its outperform rating on FGB after the bank posted “healthy” Q3 results. Earlier, Citigroup raised its price target on FGB shares by 31 per cent due to an improved global growth outlook and stronger balance sheet growth.

“Companies are getting out of the rut slowly and at least earnings are mostly coming out in a positive direction,” Vyas Jayabhanu, head of Al Dhafra Financial Brokerage, said.

Other banks at ADX also advanced, which include Abu Dhabi’s largest bank, National Bank of Abu Dhabi rose by 1.5 per cent to Dh13.90 while Abu Dhabi Commercial Bank climbed 4.2 per cent to Dh2.28.

abdulbasit@khaleejtimes.com

Abdul Basit (With inputs from Agencies)

Published: Mon 26 Oct 2009, 11:14 PM

Last updated: Sun 5 Apr 2015, 9:57 PM

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