June 13, 2018 / 7:58 AM / 5 days ago

MIDEAST STOCKS-Dubai gains on demand for bank stocks, Abu Dhabi falls

DUBAI, June 13 (Reuters) - Dubai stocks opened higher in response to selective buying in financial services companies such as Dubai Islamic Bank, but other Gulf markets were mixed with Abu Dhabi falling on profit taking in First Abu Dhabi Bank, while Qatar was flat.

Saudi Arabia, the region’s biggest stock market, was closed for holidays during the Muslim festival of Eid, which marks the end of Ramadan.

The Dubai index rose 0.1 percent, helped by a 0.6 percent gain in Dubai Islamic Bank (DIB) on optimism about its rights issue.

DIB’s planned 5.1 billion dirhams ($1.4 billion) rights issue attracted subscriptions worth more than 14 billion dirhams, the company said in a recent filing..

Ths stock has gained more than 6 percent in the last month even though it is down 5.5 percent so far this year.

The emirate’s economic incentives are also supporting the stock market such as its latest move to cut local government fees on sales at hotels and restaurants.

Abu Dhabi’s index fell 0.6 percent, weighed down by banking stocks. First Abu Dhabi Bank (FAB), which has risen sharply this year, fell 1.2 percent, while Abu Dhabi Commercial Bank dropped 0.7 percent.

FAB’s shares are still up 22 percent so far this year on strong earnings and its move to enter the Saudi market.

$1 = 3.6728 UAE dirham Reportng by Saeed Azhar. Editing by Jane Merriman

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