It was a bad day on the Stock Exchange yesterday for Abu Dhabi’s index ADI as it plummeted to its lowest rate for more than three months. Conversely it was a very positive day for Dubai’s index DFM which rose well after Dubai’s Islamic Bank announced its approval of an annual dividend. Other bluechip stocks also climbed stealthily on the day.
Last Wednesday DIB approved a dividend which will be in 15% cash and a 5% bonus share and this caused its price to rise by 4%. Emaar Properties gained 2% and the Dubai Financial Market rose by just over 1%.
However Abu Dhabi’s index plummeted to a low not seen since December 23 of 2009 this was mostly caused by Emirates Telecommunications announcing that it was going to be ex-dividend causing its shares to drop by over 4%.
Subsequently Aabar Investments rose by over 4.5% after a spokesman stated that they are seriously considering converting bonds worth approximately $2 billion to fund its expansion plans.
Zain who sold some of its assets to India’s Bharti Airtel during the week rose by over 1% after they announced a cash dividend but this may be a very temporary gain as they have just now reported a loss for their fourth quarter this year.
Analysts said that Global commodity prices are now gaining steadily and commodity based stocks are a good investment at present, e.g. Oman Cables, Jazeera Steel and National Aluminum.Paul Holdsworth, Staff Writer, Gulf Jobs Market News