By: Mahmoud Gamal
Dubai – Mubasher: Expectations of new mergers between listed banks on the UAE markets will encourage traders to increase positions in the banking and leading shares on Wednesday.
Tuesday's session saw a notable rise in the banks sector in the UAE markets, after negotiations renewed for a banking merger between Abu Dhabi Commercial Bank and Union National Bank, coinciding combining National Bank of Abu Dhabi and First Gulf Bank in the first quarter of 2017, technical analyst, Doaa Farouq, told Mubasher.
In Abu Dhabi Exchange (ADX), the banks sector went up 1.55%, backed by Union National Bank, Abu Dhabi Commercial Bank and First Gulf Bank rose 4.7%, 4.4% and 2.6%, respectively.
Dubai Financial Market (DFM) also saw a 1.05% increase in the banks sector, after Dubai Islamic Bank added 1.08%.
Most of the portfolios returned to the purchasing path between the local shares, especially the small and medium stocks, which reached technically attractive levels, technical analyst, Salem al Nowery, told Mubasher.
He added that the insurance sector also levelled up after the latest news about operational development in the insurance industry.
Dubai Islamic Insurance Co. surged 14.92%, while Al Wathba National Insurance hiked 14.12%.
Drake and Scull International led the real estate sector and rose 4.6%, while Emaar added 2.9%.
Foreign investors tended on Tuesday towards purchase with net investments of AED 87.42 million.
