Abu Dhabi Islamic Bank rose to its highest in two years as investors welcomed strong third-quarter earnings.
ADIB shares soar to two-year high despite stock limitations
Abu Dhabi Islamic Bank (ADIB) rose to its highest in two years as investors welcomed strong third-quarter earnings yesterday.
Shares rose 3.2 per cent to Dh3.16, the highest since October 2008, after the lender reported a net profit of Dh314.5 million, up 31.3 per cent compared with the same period last year.
"They were excellent results, and positively received by the market. They did better than expectations," said Saad al Chalabi, an institutional trader at AlRamz Securities in Abu Dhabi. "The bank is making operating profits and still maintaining good provisions."
Shares of ADIB have been blocked for GCC investors for some time, Mr al Chalabi said. The lender's board of directors approved a 25 per cent foreign ownership limit in February but the stock remains limited to UAE nationals at the moment.
The Abu Dhabi Securities Exchange General Index added 1 per cent to 2,807.77. The Dubai Financial Market General Index gained 0.2 per cent to 1,744.26.
Gains in Dubai were led by du, which rose 1.6 per cent to Dh3.10 a share after Research In Motion, the maker of the BlackBerry, said it planned to launch mobile banking and online payment systems. Emaar Properties lost 0.2 per cent to Dh3.88.
Elsewhere in the region, Kuwait's measure fell 0.3 per cent to 7,018.80 and Bahrain's bourse added 0.2 per cent to 1,465.56. Oman's index remained largely unchanged at 6,550.55 and Qatar's measure rose 0.5 per cent to 7,824.86. The Saudi Tadawul All-Share Index was down marginally to close at 6,283.60.