Dubai Islamic Bank Drops After Profit-Driven Rally: Dubai Mover
Dubai Islamic Bank PJSC (DIB) dropped the most in a month on bets a rally in the lender’s shares in April, spurred by profit expectations, was overdone.
Shares of the United Arab Emirates’ biggest Shariah- compliant bank declined 3.9 percent, set for the largest decrease since March 13, to 2.47 dirhams at 12:38 p.m. in Dubai. The stock had rallied 27 percent this month through yesterday, before Dubai Islamic reported after markets closed that first- quarter profit jumped 17 percent, beating analysts’ estimates. The benchmark DFM General Index (DFMGI) fell 0.6 percent.
“DIB has had an excellent run and was overcooked,” Julian Bruce, Dubai-based head of institutional trading at EFG-Hermes Holding SAE, said by e-mail today. “Broader market weakness is encouraging investors to take profits irrespective of results.”
European (SXXP) and Asian (MXAP) stocks retreated after Chinese economic growth and industrial production expanded less than economists’ estimates. All Gulf Cooperation Council bourses declined today apart from Oman’s, with the Bloomberg GCC 200 Index (BGCC200) of the region’s most-traded stocks losing 0.3 percent.
Dubai Islamic’s profit climbed to 301.7 million dirhams ($82 million), compared with a 292 million-dirham median estimate of three analysts compiled by Bloomberg. Three analysts have a buy rating on the shares, two say hold and one recommends selling, according to data compiled by Bloomberg.
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