Abu Dhabi bourse climbs to 58-month high

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 Abu Dhabi’s bourse climbed to a new 58-month high, backed by a bullish outlook on banks, while most other regional markets also gained.
Shares in Abu Dhabi’s First Gulf Bank jumped 4.9 percent, National Bank of Abu Dhabi rose 1.9 percent and Invest Bank gained 5.7 percent.
Many of the emirate’s banks have in the last two weeks reported strong earnings growth for the second quarter, with some beating analysts’ forecasts, confirming they are benefiting from an economic recovery.
“People are still positive and expecting more growth in results for the coming quarters,” said Nabil Al-Rantisi, managing director at MENA Corp. brokerage. “Participation has picked up from all sides, retail and institutional.”
Abu Dhabi’s measure rose 2.0 percent to close at 3,923 points, its highest since September 2008.
Because Abu Dhabi and Dubai have risen to rapidly this year — Abu Dhabi is up 49 percent year-to-date — some analysts are talking about a looming correction, though there is no clear technical sign of one starting.
“The index is searching for a major top — then a correction will start, which will last for at least three to four months,” said Feras Al-Zghaibi, financial markets strategist at MENA Corp. The market could pull back by 400 to 600 points at a minimum, and any break below major support of 3,834 points would trigger major stop-loss orders on short-term charts, he added.
In Dubai, the index added 0.2 percent to close at a 56-month high. District cooling firm Tabreed gained 0.5 percent after it reported a 37 percent increase in second-quarter net profit.

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