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Tue 28 Jul 2009 10:22 AM

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Abu Dhabi's two biggest banks stock surges

UPDATE 4: Abu Dhabi index ends higher for tenth straight session.

Abu Dhabi's two biggest banks stock surges
STOCK REPORT: The Abu Dhabi financial market. (Getty Images)

Abu Dhabi's index ended higher for a 10th straight session after its two biggest banks by market capitalisation surged.

National Bank of Abu Dhabi and First Gulf Bank climbed 4.3 and 4.7 percent respectively. These gains were achieved on low volumes, with less than 600,000 shares changing hands combined, and so little can be drawn from these upward moves, analysts say. The index rose 0.3 percent to 2,763 points.

Dubai's index fell for a second day as investors booked profits from Sunday's surge, its largest one-day gain for more than five months.

The benchmark slipped 0.01 percent to 1,828 points. Deyaar fell 2.6 and Union Properties dropped 1.9 percent.

Kuwait's index fell for a second day and Qatar's benchmark also declined as a region-wide equity rally waned.

National Bank of Kuwait fell 1.6 percent, Gulf Bank slid 3 percent and Ahli United Bank dropped 1.4 percent.

Kuwait's index slipped 0.1 percent to 7,713 points.

Qatar's benchmark also retreated, falling 0.2 percent to 6,678 points, its fourth decline in 13 sessions. It gained 16.5 percent over this period.

Bahrain's index rose 0.3 percent to 1,499 points.

Oman's index ended lower for the first session in four, with traders booking profits from Monday's seven-month closing high as global equities pause following a recent surge.

The benchmark fell 0.6 percent to 5,923 points.

Oman Telecommunications Co (Omantel), Bank Dhofar and Galfar Engineering each fell 2.3 percent.

Saudi Basic Industries Corp (SABIC) retreated from Monday's six week high as a slight pull back in oil prices dampened sentiment and convinced traders to book profits.

The petrochemicals producer has been closely correlated to oil prices for the past two weeks. Crude slipped to an eight-week closing low on July 14, but subsequently gained 14.9 percent in the nine trading sessions to Monday's close, with SABIC climbing 13.1 percent over the same period.

Oil was down 0.9 percent at $67.80 a barrel at 1216 GMT, spurring investors to book gains in SABIC amid a mild pull back in Gulf shares.

SABIC fell 3.5 percent and its woes dragged Saudi Arabia's index down 1 percent to 5,779 points.

Al-Rajhi Bank dropped 1.1 percent after the lender booked $112.4m in provisions for loan losses during the second quarter. (Reuters)