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Emirates NBD lifts DFM; Etisalat gains on ADX

DUBAI — UAE bourses on Tuesday rebounded in thin trade as investors preferred to stay out of the market passing through consolidating phase after posting big gains.

Emirates NBD, the region’s largest bank, surged 4.78 per cent to Dh3.07 and pulled the Dubai Financial Market into positive columns despite negative sentiments prevailed in real estate sector.

Dubai Financial Market’s General Index, or DFMGI, rose 0.12 per cent, or 2.25 points, to 1,839.07 points, first closing in positive columns during this week. Out of 26 stocks traded yesterday, only five posted gains, while five remain unchanged and 16 declined as volume dropped to 176.18 million shares.

“ENBD will be one of the main beneficiaries of Dubai World’s restructuring and that’s the reason the stock is up,” said Mohamed Kamal, an equities trader at Prime Emirates in Abu Dhabi.

On March 25, Dubai World unveiled a generally well-received debt-restructuring offer. ENBD is one of two domestic lenders on a Dubai World creditor committee, with Abu Dhabi Commercial Bank (ADCB) the other.

“The market is consolidating after making big gains and this should continue this week,” Kamal said.

“The market will then resume its rally if first-quarter results are good — investors want to be sure that company earnings are recovering,” Kamal said.

Union Properties and Emaar Properties declined 1.96 and 0.25 per cent, respectively. Aramex fell 2.17 per cent, Shuaa Capital declined 1.29 per cent and Air Arabia dropped 1.06 per cent also capped the DFMGI gains in thin trade.

Drake & Scull price target

Credit Suisse raised its price target on Dubai contractor Drake & Scull International to Dh1.22 from Dh1.19 citing higher-than-expected backlog additions and a more positive outlook for new contracts this year.

The brokerage cited Drake’s geographical diversification outside Dubai as a reason for the price target increase, with Dubai’s share of the backlog falling quarter over quarter.

ADX rises

Abu Dhabi Securities Market’s General Index ended higher for a second session in six days, rose 0.39 per cent to 2,848.11 points. Volumes dropped to a two-week low. National Bank of Abu Dhabi and First Gulf Bank added 1.69 and 1.39 per cent, respectively. ADCB fell 2.91 per cent to Dh2. Abu Dhabi Shipbuilding Company and Etisalat advanced 5.56 per cent and 2.38 per cent, respectively.
— muzaffarrizvi@khaleejtimes.com