Wednesday, Apr 24, 2013

Dubai: Abu Dhabi stock index gained the most since 2009 as financial stocks rallied on the back of a big surge in the share price of the emirate’s largest lender after it posted analyst estimates-beating first quarter earnings on Tuesday.

National Bank of Abu Dhabi (NBAD) advanced 5.41 per cent to close at Dh11.70, the highest since January 2006, after it announced that its net profit grew 35.5 per cent as net fees and commissions grew by 8.9 per cent.

The Abu Dhabi Securities Index rose 2.07 per cent to 3254.07 on higher volumes. The turnover on the exchange was Dh277.74 million.

The Dubai benchmark measure was up 1.57 per cent to 2052.91 as logistics company, Aramex, posted a 14 per cent increase in its first quarter net profit on Wednesday.

“Because of the results of companies, especially the big ones, showing huge growth or better than expected growth for first quarter and also, because of improved sentiment and liquidity [we feel] that this rally is going to be different in terms of trading values,” said Mohammad Ali Yasin, managing director of NBAD Securities.

What’s encouraging, he added, is the “very good” volumes and this really confirms the positive sentiment and improvement seen in the beginning of the year.

Abu Dhabi

In Abu Dhabi, other stocks to gain on earnings expectations include Abu Dhabi Commercial Bank, up 3.56 per cent to Dh4.66, Sharjah Islamic Bank, gaining 14.85 per cent to Dh1.16 and United Arab Bank, climbing 6.10 per cent to Dh4.

Etisalat, which reported almost a flat first quarter earnings on Wednesday, rose on the news that the UAE biggest telecom operator was to make a binding offer to buy Vivendi’s 53 per cent stake in Morocco’s Maroc Telecom.

In Dubai, Emirates NBD, was the biggest gainer, soaring 10.64 per cent to Dh4.99. The bank will report its first quarter earnings today. Air Arabia, the region’s biggest discount airline, added 4.19 per cent to Dh0.995, extending its two-day gains to almost nine per cent. Emaar Properties, which had the highest turnover of Dh82.45 million, rose 1.50 per cent to Dh5.43.

By Gaurav Ghose Financial Features Editor

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