ADCB shares reach 31-month high

06/06/2011 - Dubai Investment News Posted by Neil King
ADCB shares reach 31-month high

Shares in the Abu Dhabi Commercial bank (ADCB) have increased to a 31-month high on the back of its auction of its holding in the Malaysian bank RHB.ADCB is set to sell its stake in the bank, a move which has seen its share price increase by 2.7 per cent.As a result of this jump, the share price now stands at its highest level since October 2008.The increase has also been boosted by ADCB's insistence that merger plans between RHB and Malaysian lenders Maybank and CIMB will not derail its plans to offload its 25 per cent share.It comes after ADCB launched a new system that will enable customers to make payments using their mobile phone numbers.The new Mobi system means customers will not be required to have cash, a card or even a mobile phone in their possession to make a purchase.Ala'a Eraiqat, the bank's chief executive, said: "Our number one competition is against cash. We believe that 70 to 80 per cent-plus of all customer transactions in the UAE are still cash. But payments are on the verge of a huge shift in technology."