By Mohd Edrees
March 17 (Reuters) - Stock markets in United Arab
Emirates rebounded on Friday as fears of a global banking crisis
subsided after U.S. authorities and banks came to the rescue of
First Republic Bank.
Major U.S. banks injected $30 billion to save First Republic
Bank, which was caught up in a widening crisis triggered by the
collapse of two other mid-size U.S. lenders over the past week.
Crude prices - a key contributor to Gulf economies - surged
more than 1% on Friday on expectation of strong demand growth in
top importer, China with Brent gaining $1.04, or 1.39%,
to $75.74 a barrel by 1008 GMT.
In Abu Dhabi, the index surged 2.2%, its highest
intraday gain since mid-October, as International Holding
Company , the most valued listed firm in UAE, jumped
3.8%, while IHC-owned investment firm Multiply Group climbed 6.4%.
Among winner, UAE's largest lender First Abu Dhabi Bank gained 2.5% and largest utilities firm Abu Dhabi
National Energy Company drifted 5.8% higher.
Eshraq Investment rose 3.7% after the firm announced the
sale of 58 residential apartments in Burj Daman for 162 million
dirhams ($44.11 million)
According to Fadi Reyad, the Abu Dhabi stock market
rebounded on easing concerns of banking crisis, but could remain
under pressure from low energy prices.
Dubai's main market index settled 1.3%, lifted by
strong gains in the heavyweight real estate and banking sectors
with most stocks trading in positive territory.
Among gainers, toll operator Salik Company gained 2.9% and
state-controlled utility firm Dubai Electricity And Water
Authority increased 2.1%
Blue-chip developer Emaar Properties and its
construction unit Emaar Development hiked 1.9% and
3.8% respectively after both firms declared a full-year cash
dividend of 25 fils and 52 fils per share respectively.
Improvement in sentiment globally led to rebound in the
Dubai stock market with the financial sector on the upside for
the most part, said Fadi Reyad, Chief Market Analyst at
CAPEX.com MENA.
Abu Dhabi and Dubai markets posted weekly losses of 1.8% and
1.1% respectively.
ABU DHABI jumped 2.2% to 9,650
DUBAI rose 1.3% to 3,349
($1 = 3.6725 UAE dirham)
(Reporting by Mohd Edrees in Bengaluru)
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