By: Mahmoud Gamal
Dubai – Mubasher: The Dubai Financial Market’s (DFM) market capitalisation gained over AED 980 million on Tuesday, pushed up by the announcement of a planned merger between three Emirati banks, Abu Dhabi Commercial Bank (ADCB), Union National Bank (UNB) and the privately-owned Al Hilal Bank.
The potential merger will establish a lender with assets of around $110 billion, Bloomberg News reported.
The DFM’s general index added 7.6 points, or 0.27%, to close at 2,837.17 points on Tuesday.
The banks sector grew 0.61%, after Emirates NBD added 1.2% to AED 9.3.
The real estate sector went up 0.29%, as Arabtec Holding and Damac Properties rose 1.07% and 0.5%, respectively.
On the other hand, the services sector declined 2.8%, as Amanat Holdings dropped 4.8% to AED 1.19 and the consumer staples sector decreased by 0.26% after DXB Entertainments lost 0.3%.
The transportation sector sank 0.23%, as Gulf Navigation and Aramex went down 1.46% and 0.23%, respectively.
The DFM is still in need for more liquidity to initiate a new positive period, vice president of Investment Research at KAMCO Raed Diab told Mubasher.
The market also needs foreign investments, either individual or institutional, especially that most of the stocks have reached attractive price levels, he added.
Translated by: Muhammad Khalid