x Abu Dhabi, UAEWednesday 26 July 2017

UNB falls after dividend cut

Union National Bank declined the most in more than three years after the lender cut its full-year cash dividend by 33 per cent.

Union National Bank declined the most in more than three years after the lender, whose shareholders include the Abu Dhabi and Dubai governments, cut its full-year cash dividend by 33 per cent.
The shares slumped 8.5 per cent, the largest decrease since December 2009, to Dh3.36 at the close on the Abu Dhabi Securities Exchange (ADX).
About 3.7 million shares were traded, more than four times the three- month daily average, according to data compiled by Bloomberg. The stock was the biggest decliner on the benchmark ADX General Index, which fell 0.1 per cent to 2,897.86 points.
"We are still scratching our head on why UNB hasn't increased its dividend per share" given the company's full-year earnings growth, said Jaap Meijer, a director at Arqaam Capital.
"A hike in dividend per share would have been a great catalyst to get the shares closer to the fair value" of Dh4.7, said Mr Meijer, who has a buy rating on the stock.
Aldar Properties reported full year net profits doubled to Dh1.3 billion this week. Shares in the developer, which is awaiting final approval to merge with rival Sorouh Real Estate, were a touch lower at Dh1.36 a share.
Dubai Financial Market shares closed in the black, up 0.1 per cent to 1,870.67.
In Egypt stocks snapped their longest wining streak in a month. Commercial International Bank Egypt fell to the lowest level in a week.
The benchmark EGX 30 Index broke a five-day string of gains, losing 1.8 per cent to 5,690.93 at the close in Cairo.
 
malrawi@thenational.ae