Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

DIB Rise to Highest Since 2011 as Bank Repays Loan: Dubai Mover

April 7 (Bloomberg) -- Dubai Islamic Bank PJSC climbed to the highest level in almost two years as the biggest Shariah-compliant lender in the United Arab Emirates paid a government loan it got in 2008 before it was due.

The shares jumped 4.1 percent to 2.27 dirhams, the highest close since April 2011. About 25 million shares were traded, or almost five times the three-month daily average, according to data compiled by Bloomberg. The benchmark DFM General Index lost 0.3 percent.

DIB’s surge takes this year’s gain to 13 percent, compared with a 16 percent advance in Dubai’s gauge. The bank, which is taking over mortgage lender Tamweel PJSC, paid back the 3.75 billion-dirham ($1 billion) loan it received from the U.A.E. Finance Ministry during the global financial crisis. National Bank of Abu Dhabi PJSC and Abu Dhabi Commercial Bank PJSC are also among lenders that have repaid all or part of the funds owed to the ministry.

DIB’s “robust liquidity position” helped pay the loan ahead of time, the bank said in a regulatory filing.

The stock’s 14-day relative strength index rose to 70 today. A reading above this level indicates to some analysts that the security is poised to decline. Two analysts have a buy rating on the shares, two say hold and two recommend selling, according to data compiled by Bloomberg.

To contact the reporter on this story: Alaa Shahine in Dubai at asalha@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.