Dubai : DFM jumps 2.5 per cent

DUBAI — Leading UAE stock market indices made strong gains yesterday, the biggest in more than a month. The Dubai Financial Market (DFM) General Index advanced 2.5 per cent to 3,757,69 while the Abu Dhabi Securities Market (ADSM) Index jumped 2.1 per cent to 2.922.32. On the DFM, the banking sector performed strongly. The banks index advanced 3.2 per cent as three banks made gains. Dubai Islamic Bank (DIB) leapt 6.5 per cent to Dh6.87. Shares in Emirates Bank International, currently in the process of merging with National Bank of Dubai, rose 3.9 per cent to Dh9.09. The National Bank of Dubai advanced 0,8 per cent to Dh8.67. Shares in the Islamic Arab Insurance Company (IAIC), the largest Islamic insurance (takaful and re-takaful) operator in the world, rose 5.47 per cent to Dh5.91. It made profits of Dh181 million for the 2006 financial year, a 65 per cent increase over 2005. Gulf General Investments, a UAE investor in real estate and industrial projects, recovered most of its recent losses (it had lost about 7 per cent over the past few days) by climbing 5 per cent to Dh5.91. Amlak, the UAE’s largest home-finance provider, also made significant gains, advancing 4.2 per cent to Dh2.95. This follows yesterday’s 2.5 per cent increase. Before that it had lost 12 per cent since March 29 when the company announced that the UAE Central bank had rejected its application for a banking licence. Emaar Properties, one of the world’s largest property companies and Amlak’s largest shareholder, also advanced by 2.3 per cent to Dh11.20, extending the previous day’s 0.9 per cent gain. On the ADSM, 28 stocks advanced, eight declined and two remained unchanged. Among the biggest gainers was Abu Dhabi Commercial Bank (ADCB) whose shares jumped 7.5 per cent to Dh6.18 on speculation that the bank was in merger talks with Union National Bank (UNB). ADCM, the third largest lender by assets in the UAE, said there was « no substance » to the market speculation. The government-controlled UNB is the seventh-largest bank by assets in the UAE. Its shares jumped 3.1 per cent to Dh6.01. Source : Khaleedj