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Stock markets in the United Arab Emirates and Egypt rose on Thursday on the back of strong second-quarter earnings at banks and expectations for similar performances by real estate developers.
The Dubai benchmark added 2.0 per cent as the UAE markets resumed trading after three days of Eid Al Fitr holidays. Dubai Islamic Bank, which posted a 59.6 percent jump in second-quarter net profit last week, was the main support, rising 3.1 percent.
Construction firm Arabtec dominated turnover, jumping 4.9 per cent as stock exchange data showed its largest shareholder, former chief executive Hasan Ismaik, continuing to trim his stake, which has dropped since last week to 28.59 percent from the original 28.85 per cent.
Some investors hope Abu Dhabi state fund Aabar Investments, the second biggest Arabtec shareholder with 18.94 percent, will buy at least part of Ismaik’s holding. But the Aabar stake has not increased as Ismaik’s has edged down.
Among other stocks that supported the Dubai market were developers Emaar Properties, Union Properties UPRO.DU and Deyaar, which gained 0.7, 4.4 and 2.4 percent respectively. Emaar is expected to announced second-quarter earnings in the next few days.
“We had good results from banks and I think people are expecting good results from developers now,” said Sanyalak Manibhandu, manager of research at NBAD Securities.
Abu Dhabi’s largest listed developer, Aldar Properties, gained 5.0 percent, helping lift the emirate’s main index 1.0 per cent.
Shares in Abu Dhabi Commercial Bank ADCB.AD, which last week reported a 22-percent rise in second-quarter profit, jumped 5.8 percent.
The biggest gainer was Islamic insurer National Takaful Company WATA.AD (Watania), which surged 14 percent after announcing on Sunday that its majority shareholders had agreed to sell stakes to strategic investors from the Gulf region, which it did not name.
Some market players, however, say the UAE markets may pull back next week because of external factors such as global tensions over Ukraine and the continued tapering of the U.S. Federal Reserve’s bond purchases.
“All this news is not really positive so we should expect some profit-taking in the coming session,” said Sebastien Henin, head of asset management at The National Investor in Abu Dhabi.
The stock markets in the UAE and GCC were in a tug-of-war state as investors weighed positive news on the economic front and a ‘catastrophic’ overnight explosion in Lebanon that killed at least 100.<
GCC equity markets staged a strong recovery in the latter part of 2Q20, reversing a large part of the prior losses induced by the coronavirus and its associated lockdowns and restrictions. The recove
The MSM 30 Index closed the week up by 0.12 per cent despite lower volume and turnover as compared to the previous week. Shariah index was down by 0.07 per cent. The turnover and volumes were lower t
Oman Daily Observer
Abu Dhabi Securities Exchange (ADX) announced on Tuesday that it has listed $4 billion Fixed Rate Notes issued by MDGH GMTN B.V. and guaranteed by Mamoura Diversified Global Holding (MDGH).
The Gulf Today
Leading UAE banks have come to the bond market, and they are getting a warm response. Sharjah Islamic Bank priced its $500 million 5-year sukuk at LIBOR plus 285 bps, and received more than $3.4 bil