DFM closes in green on positive data

13/04/2017 05:24 AST

Generally positive first-quarter results from Gulf banks helped lift financial stocks on Wednesday, while Saudi Arabia’s third-largest telecoms operator jumped by its daily limit after reporting its first ever quarterly net profit.

The Dubai Financial Market General Index added 0.2 per cent to 3,541 points. Elsewhere, Dubai Islamic Bank extended its prior session gains to add 1.7 per cent; on Tuesday the lender reported a 4 per cent rise in first quarter results. The index on which it trades,, gained 0.2 per cent on Wednesday.

In Abu Dhabi, Union National Bank surged 6.4 per cent after the company reported first quarter results that came ahead of analysts’ expectations.

The lender made a net profit of Dhs452 million ($123.06 million); three analysts polled by Reuters forecast a quarterly average profit of Dhs443.62 million and this compares to a net profit of Dhs450 million in the year earlier period.

UNB’s loans and advances grew 8 per cent from the first quarter 2016 and customer deposits rose by 5 per cent.

Riyadh’s index rose 0.9 per cent in the highest daily traded volume in a month. But shares of the largest listed stock, Saudi Basic Industries fell 1.2 per cent as they went ex-dividend on Wednesday.

Loan growth was up 33 per cent year on year to 536 billion riyals, while customer deposits rose by 34 per cent to 541 billion riyals.

Its peers that trade on Doha’s exchange were also strong, with Commercial Bank climbing 2.4 per cent.

The index gained 0.7 per cent. In Saudi Arabia, banking shares were also robust with all but one of the 12 lenders advancing.

Confidence in the sector was lifted after Saudi British Bank reported earnings that were broadly in line with estimates. Its shares closed 2.3 per cent higher.

The lender made a first quarter net profit of 1.04 billion riyals, down 9.3 per cent from the year-ago period.

SABB attributed the fall in net profit to higher operating expenses, but said it was partially offset by a 1.6 per cent increase in operating income.

The Gulf Today