Abu Dhabi Commercial Bank was a bright spot on the capital's exchange yesterday as the lender proceeded with the auctioning of its 25 per cent stake in a Malaysian bank.
ADCB's shares rose to their highest level in more than two years, gaining 2.7 per cent to Dh3.03 after Reuters reported the bank was going ahead with plans to sell its holding in RHB.
Two other Malaysian lenders, Maybank and CIMB, are separately trying to merge with RHB.
ADCB shares have gained 11 per cent in the past seven trading days.
"The stake sale will improve the capital adequacy ratios, which is excellent for the bank right now," said Nabil Farhat, a partner at Al Fajr Securities in Abu Dhabi. "The proceeds of the funds could bring the bank's profits to pre-crisis levels, or be used as extra provisioning if needed." Etisalat, the UAE's biggest telecommunications operator, rose 0.9 per cent to Dh10.45. Mohammed Omran, the chairman, told reporters yesterday that the company would focus on expanding networks in the Emirates, Saudi Arabia and Egypt, rather than on acquisitions and new licences.
The Abu Dhabi Securities Exchange General Index was up 0.4 per cent to 2,678.04 points, while the Dubai Financial Market General Index was down 0.2 per cent to 1,563.41.
Kuwait's index rose 0.3 per cent to 6,312.90, Bahrain's slipped 0.3 per cent to 1332.48, Oman's was virtually unchanged at 6,043.44, and Qatar's slipped 0.4 per cent to 8,117.36. The Saudi Tadawul All-Share Index was up 0.4 per cent to 6,657.63.