DIB Rise to Highest Since 2011 as Bank Repays Loan: Dubai Mover
Dubai Islamic Bank PJSC (DIB) 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 (TAMWEEL), 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 (ADCB) 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 firstname.lastname@example.org
To contact the editor responsible for this story: Claudia Maedler at email@example.com