ADIB stock jumps to highest in two years

Shares up after Islamic lender posts rise in quarterly profit, leads Abu Dhabi index higher
ADIB stock jumps to highest in two years
Abu Dhabi index was up in early trade, while Kuwaits bourse trades lower.
By Reuters
Tue 19 Oct 2010 11:42 AM

Abu Dhabi Islamic Bank (ADIB) and telecom firm Etisalat led a rally as Abu Dhabi's index ended
at a near six-month high.

ADIB gained 3.9 percent a day after posting a 31.3 percent rise in quarterly
profit, lifting the emirate's index 1.1 percent to a 2,808 points, its highest
close since April 26.

"ADIB stocks rallied on high volumes," said Musa Haddad, head of
MENA equity desk at National Bank of Abu
Dhabi.

"We have not seen volumes on this stock before. This shows that the
upside move is continuing."

The second largest Islamic lender in the UAE made a net profit of AED314.5
million ($85.62) in the three months to September 30, up from AED239.3 million in
the same period a year earlier.

Etisalat added 2.6 percent, boosting the index. After market hours, the
telecom firm announced a third-quarter net profit of AED1.74 billion.

Dubai's
index gained 0.3 percent, led by a late rally by property stocks. Arabtec
gained 1.8 percent.

Kuwait's
telecom firm Zain weighed on the country's index as it slipped after rising a
day earlier.

Zain fell 1.4 percent dragging Kuwait's benchmark by 0.4 percent
to 7,019 points.

"There seems to be no reason behind the performance of Zain but it has
been moving up and down in the last few days," said a Kuwaiti trader who
did not want to be named.

"The market is trading on low volumes. This is a concern for traders
and we hope things will improve."

Kuwait's
Agility dropped 5.1 percent a day after its chairman said he expected 2011 to
be a difficult year. Tarek Sultan told the Reuters Middle East Investment summit
the logistics firm was pushing to move away from being a government military
supplier.

Qatar's
index ended higher as third-quarter results boosts some stocks. Masraf Al Rayan,
Qatar's
fourth-biggest lender by market value, gained 1.3 percent after it posted a 43
percent increase in the third quarter profits.

The benchmark gained 0.5 percent ending at 7,825 points. (Reuters)

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