Abu Dhabi Index Rises to 5-Year High Led by Banks; Saudi Drops - Bloomberg

Abu Dhabi Index Rises to 5-Year High Led by Banks; Saudi Drops - Bloomberg:

"Abu Dhabi’s benchmark index, the world’s fourth-best performing measure last year, rose to the highest in more than five years, as investors bet on strong bank earnings. Saudi Arabia’s Tadawul Index fell.

The ADX General Index gained for a third day, advancing 0.9 percent to 4,561.96, its highest close since August 2008. United Arab Bank rose more than 8 percent. First Gulf Bank PJSC (FGB), the United Arab Emirates’ third-biggest lender, rose as much as 2.6 percent on more than four times the three-month average daily volume. Dubai’s benchmark DFM General Index (DFMGI) added 0.2 percent.

Share prices in Abu Dhabi, which rose 63 percent last year, have benefited from a recovery in the U.A.E.’s financial and property markets and beat all except three benchmarks of more than 90 tracked by Bloomberg. The sheikhdom’s economy is expected to grow at an average 5.7 percent a year through 2016, according to the emirate’s economic development department. That compares with estimated global growth of 2.8 percent this year, according to data compiled by Bloomberg."

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