First Gulf Bank PJSC (FGB) led Abu Dhabi’s stock index to the highest level in more than a month after the United Arab Emirates lender said it would distribute a 2011 dividend that exceeded expectations.
The shares soared 9.9 percent, the most since December 2009, to 17.15 dirhams at the 2 p.m. close in Abu Dhabi. The bank, controlled by the emirate’s ruling family, recommended a cash dividend of 1 dirham a share and a free stock for every one held. The ADX General Index (ADSMI) rose 1.3 percent to 2,453.98, the highest since Dec. 12. Union National Bank PJSC (UNB), a state- controlled lender, had the third-biggest gain on the gauge, rising 1.7 percent.
“Retail investors are considering the positive news of the dividend payout as more important than net income,” said Sebastien Henin, who helps oversee $100 million at The National Investor in Abu Dhabi. “The news will encourage investors to buy shares now, especially as valuations are attractive.”
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