Abu Dhabi shares rallied to a 19- month high on bets earnings of the emirate’s banks will improve and as the measure’s equities offer cheaper valuations than Persian Gulf and emerging-market peers.
National Bank of Abu Dhabi PJSC, which may post an 11 percent advance in 2012 profit, rallied to the highest level in almost seven years. Union National Bank (UNB) PJSC, whose shareholders include the governments of Abu Dhabi and Dubai, gained for a second day. The ADX General Index (ADSMI) increased 0.5 percent to 2,741.83, the strongest level since June 2011, at the close in the United Arab Emirates capital.
The index has gained 19.6 percent since a Jan. 17, 2012 closing low of 2,293.09, nearing the 20 percent threshold some investors consider as the beginning of a bull market. Abu Dhabi banks and real estate companies are recovering from a credit crisis that caused property prices in the U.A.E. to drop by as much as 65 percent and slowed lending, bringing the neighboring emirate of Dubai to the brink of default in 2009.
Abu Dhabi Stocks, Nearing Bull Market, Gain on Bank Profit Bets - Bloomberg
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