Traded volume peaks in First Abu Dhabi Bank as rally continues
Published: 15:04 April 5, 2017
Dubai: More traders participated in the newly formed First Abu Dhabi Bank boosting liquidity in the once illiquid stock on inclusion in the FTSE emerging market index, causing a surge in the Abu Dhabi index on Wednesday, and making it a regional leader.
About 33 million shares were traded on First Abu Dhabi Bank compared to 8 million shares the previous day. Traded volume was the highest at 23 million shares on March 30, a few days before the official merger. First Abu Dhabi Bank closed 4.13 per cent higher at Dh11.35, after hitting a 52-week high of Dh11.55.
“The First Abu Dhabi Bank has been cornering volumes for the past three days due to FTSE rebalancing. We can’t really tell what will happen going ahead. I think we have seen maximum of the volumes, we won’t be able to see these volumes again,” said Hesham Khairy, Head of Institutional Trading at Menacorp.
Boosted predominantly by the performance First Abu Dhabi Bank, the Abu Dhabi index closed 2.02 per cent higher at 4,640.74. The gains were highest in the Gulf followed by subdued performance in Dubai or Qatar.
Other banking stocks also performed in trade. Abu Dhabi Islamic Bank closed 0.51 per cent higher at Dh3.92. Abu Dhabi Commercial Bank closed 1.32 per cent higher at Dh6.90. Eshraq Properties closed 3.67 per cent higher at Dh1.13. Etisalat closed 1.11. per cent higher at Dh18.20.
The Dubai index, however, closed 0.38 per cent higher, extending gains for another session. The Dubai Financial Market General Index closed at 3,573.25. Traded value stood at Dh375 million, a slight pick-up from previous week, but still way below the peak of Dh1 billion seen a few months ago.
“Volumes have been down. The market is not showing any direction going forward, as its trading in a very narrow range. I don’t think anything significant will happen,” said Khairy.
Traders will also look at the first quarter results along with oil prices for direction.
Gulf Finance House closed 1.22 per cent higher at Dh2.48. Dubai Islamic Bank closed 1.22 per cent higher at Dh5.83. Emaar Properties closed 0.7 per cent higher at Dh7.50. Air Arabia closed 1.8 per cent higher at Dh1.12. Out of a total of 32 stocks, shares of 17 firms rose, while other 8 fell. The rest remained steady.
The Tadawul index was 1 per cent higher at 7,059.99. The parallel market index was 0.38 per cent lower at 4,990.26.
The Qatar exchange index closed 0.72 per cent higher at 10,466.99, while the Muscat MSM 30 index closed 0.15 per cent higher at 5,623.56.