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GFH shares shine on DFM before stocks go ex-dividend.

Summary: DIB rights acting as a dampener on local markets

Siddesh Suresh Mayenkar, Senior Reporter

Dubai: Gulf Finance House shares rose more than 5 per cent on Sunday as sluggish mood continued among traders before some of the stocks go ex-dividend.

GFH shares closed 5.38 per cent higher at Dh1.37. The Dubai Financial Market General Index closed 0.61 per cent higher at 3,306.57.

Dubai Islamic Bank closed 1.15 per cent higher at Dh6.17. DIB is planning to raise Dh1.647 billion on the Dubai Financial Market by issuing additional shares. Shareholders will have a right to buy one share for every three shares held and will have a nominal value of Dh1, and the rights may be at a discount to market price.

"DIB [Dubai Islamic Bank] rights is a dampener in the very short term. The uncertainty over pricing of DIB rights is weighing on markets," Sanyalaksna Manibhandu, head of research, First Abu Dhabi Bank Securities told Gulf News.

Traders were not forthcoming ahead of ex-dividend dates on many shares. "A lot of stocks will go ex-div, institutions will go for the dividend. Retail traders are doing nothing. People are unsure and are waiting around as there is no conviction in absence of any catalysts," said Manibhandu, adding, "people don't want to be the first movers in such a market."

Sideways

Traders may look at first quarter bank results to decide the outlook for the remaining quarters.

Emaar Properties closed 0.63 per cent higher at Dh6.37. Union Properties closed ended 0.34 per cent lower at Dh0.873. Shuaa closed 2.68 per cent lower at Dh1.09.

Sideways movement was seen on Abu Dhabi bourse. The Abu Dhabi Securities Exchange general index closed 0.05 per cent higher at 4,582.01.

Aldar Properties closed 0.46 per cent higher at Dh2.17. Eshraq closed 2.78 per cent higher to Dh0.74.

Elsewhere in the Gulf, Saudi Arabia's Tadawul index closed 0.42 per cent lower at 7,493.63.

The Qatar exchange index closed 0.18 per cent lower to 9,080.13.

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Article Details
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Publication:Gulf News (United Arab Emirates)
Geographic Code:7UNIT
Date:Feb 25, 2018
Words:372
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