Dubai Islamic Bank PJSC has jumped up to its highest figures within the last 2 years after the biggest Shariah-compliant lender in the United Arab Emirates paid the Government loan which it received in 2008. The loan has been repaid completely before the due time and this has created positive sentiment for the bank’s shares. The shares of Dubai Islamic Bank jumped up to 2.27 dirhams, as those experienced an increase of 4.1%. This marks the highest close for this company’s shares since April, 2011. On today, in the benchmark stock gauge of Dubai, around 25 million shares were traded; this is more than 5 times of the daily average of the last 3 months. Incidentally, the benchmark gauge of Dubai, DFM General Index has declined by 0.3% on today.
Today’s surge of Dubai Islamic Bank takes the bank’s 2013 gain to 13%. This is slightly less in comparison with the yearly advance of the Dubai gauge, that of 16%. Dubai Islamic Bank, incidentally, is going to take over the mortgage lender Tamweel PJSC and the loan was taken from the Finance Ministry of United States of Emirates during the global financial crisis. The loan it received was of 3.75 billion Dirhams. Apart from Dubai Islamic Bank, other big lenders of the country such as Abu Dhabi Commercial Bank PJSC and the National Bank of Abu Dhabi have also repaid all or part of the funds that was owned to the Finance Ministry of the country.
As stated in a regulatory filing, Dubai Islamic Bank believes that the robust liquidity position of the same has helped it to pay back the loan even before the actual time.
The relative strength index of the stock for the last 14 days jumped up to 70 on today. Many analysts believe that a reading above 70 denotes that the security is all set to decline pretty soon. As far as Dubai Islamic Bank’s stocks are concerned, analysts are kind of divided at this point of time. Where, 33% of the analysts feel that they should put a buy rating on Dubai Islamic Bank’s shares, 33% more recommend selling the same. Whereas, the remaining feel that the stockholders should hold on to the shares of Dubai Islamic Bank for the time being as the same is expected to grow further in near future.