That's a record! Think the highest previous record was about 3 billion. What's staggering is how much was DIB trades. Emaar, usually the big one was down to a tenth of DIB today - only 400 million dhs or so.
DIB open 29.05, close 32.45 but trading at around 33 just before closing. Day low 28.60, day high 33.40 (fractionally under the 15% limit up).
No other significant movements really. Shuaa was up about 2%, ARTC down 1.4%.
Last edited by sharewadi on Tue 18 Apr 2006 15:32; edited 2 times in total
DUBAI — The UAE stock market witnessed a 'one-stock bull run' yesterday as Dubai Islamic Bank (DIB) counter traded an all-time record turnover of Dh4.66 billion, larger than the previous highest ever turnover recorded on Dubai Financial Market.
While the investor frenzy drove up the volumes and turnover on DIB counter, the DFM turnover hit a new record high of Dh5.54 billion and the combined turnover of both the bourses touched new record high of Dh6.02 billion.
A rally began building momentum on the DIB counter from the second week of this month when the company had effected a stock-split from Dh10 per share to Dh1per share. In addition, the bank had also opened its door for foreign ownership of shares, up to 15 per cent of its total shares.
Market analysts say there has been a massive inflow of foreign investments to the DIB counter. “A large number of day-traders are chasing the DIB stock following its decision to open up for foreign investment up to 15 per cent. While rumour driven market sentiments are playing a major role in the current rally on the DIB counter, a number of fundamental factors such as its aggressive expansion and the bank's well-planned out business plans are attracting both individual and institutional investors,” said a DFM broker.
The DIB scrip closed 11.70 per cent up at Dh32.45, while trading an intra-day high of Dh33.40 almost hitting the upper circuit breaker of DFM yesterday. Although many players in the market are a bit surprised by such massive increase in turnover on the DIB counter, P. Krishnamurthy an investment analyst said: “DIB has suddenly emerged a market favourite because of the unleashing of large foreign liquidity available in the market. Market players know the stock is fundamentally strong while the company holds big potential in terms of future earnings.”
Despite an official denial from DIB, the market is anticipating a rights issue from the bank in the near future. Last Wednesday, in a faxed letter addressed to Essa Kazim, Director General of Dubai Financial Market, Mohammed Saeed Al Sharif, Deputy CEO, Financial Affairs, DIB said the bank has not taken any decision to expand its capital.
“We have seen such denials from other companies in the recent past but to be followed by an official announcements endorsing the rumours that drove up the market. In the case of Amlak too, the sequence of events were similar. DIB is in the threshold of a massive regional expansion and the market is expecting a capital expansion,” said an investor.
DIB' has adapted an aggressive expansion strategy, which started with the establishment of DIB Pakistan, a wholly owned subsidiary of DIB. In July this year the bank had acquired 60 per cent stake in Al Khartoum Bank in Sudan.
The overall UAE market turnover increased by 106.8 per cent yesterday. Barring the massive jump on the DIB counter, the gains were modest with the combined turnover of the bourses reporting a total of Dh1.4 billion. While the market benchmak, NBAD General Index gained 135 points to close at 17,061 points, the DFM Index gained 1.5 per cent to close at 1096 points.
DFM traded more than 200 million shares worth Dh5.5 billion. While DIB alone accounted for more than percent of the volumes, the market witnessed modest losses on most key counters. While property major Emaar slipped 20 fils to close at Dh23.75, Tabreed and Union Properties were down by 9 fils each. On ADSM, the Abu Dhabi Commercial Bank posted a big gain of Dh19.5 (7.6 per cent) followed by Abu Dhabi Islamic Bank scrip, which closed Dh6.70 up at Dh136.20. In the service sector, Etisalat slipped marginally by 30 fils down atDh32.60.
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