Abu Dhabi Shares Advance to April-High on Earnings; ADIB Gains

19/10/2010 00:00 AST

Abu Dhabi shares climbed for a fifth day to the highest level since April as investors bet third- quarter earnings will increase and after First Gulf Bank PJSC’s recommendation was raised at EFG Hermes Holding.

Abu Dhabi Islamic Bank PJSC, the United Arab Emirates’ second-biggest bank complying with Shariah banking principles, climbed the most in more than a week after it said profit advanced 31 percent. First Gulf, the U.A.E. lender controlled by Abu Dhabi’s ruling family, jumped 2 percent after it was raised to “buy” at EFG Hermes. The ADX General Index increased 1.1 percent to 2,807.77, the highest level since April 26, at the 2 p.m. close in Abu Dhabi.

Lenders “should be coming in line with expectations on earnings,” said Anastasios Dalgiannakis, a Dubai-based trader at Mubasher Financial Services. “Banks have seen inflows from foreign institutional investors with FGB opening higher this morning on the back of an EFG upgrade.”

Abu Dhabi Islamic increased 3.9 percent to 3.18 dirhams. Net income rose to 314.5 million dirhams from 239.5 million dirhams a year earlier.

First Gulf Bank climbed the most since Oct. 10 to 15.60 dirhams. EFG Hermes assigned a price estimate of 22.50 dirhams to the company with the fourth-heaviest weighting on Abu Dhabi’s index.

Bank Reports

Abu Dhabi Commercial Bank PJSC, the third-largest lender in the U.A.E. by assets, may see third-quarter net income surge more than eightfold to 287 million dirhams, according to the median estimate of three analysts in a Bloomberg survey.

National Bank of Abu Dhabi PJSC, the U.A.E.’s second largest lender, could see profit advance 13 percent to 1.04 billion dirhams, according to the mean estimate of three analysts also in a Bloomberg survey. Abu Dhabi Commercial and National Bank are expected to report earnings next week.

Dubai’s DFM General Index increased 0.3 percent and Qatar’s QE Index advanced 0.5 percent. Kuwait’s gauge retreated 0.4 percent, while Bahrain’s gauge gained 0.3 percent. Oman’s MSM30 Index added 0.1 percent. The Bloomberg GCC 200 Index decreased 0.2 percent and Saudi Arabia’s Tadawul All Share Index fell 0.3 percent.

Bloomberg