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Stock markets in the UAE rose oon the back of some strong second-quarter earnings reports and expectations for more of them, while Qatar and Egypt pulled back in thin trade before long breaks for Eid Al Fitr holidays.
Dubai’s benchmark rose 1.9 percent as blue-chip lenders Dubai Islamic Bank and Emirates NBD added 4.4 and 2.0 percent respectively.
Dubai Islamic Bank posted a 59.6 percent jump in second-quarter net profit on Thursday. The bank made AED667.5 million ($181.8 million) in the quarter, beating analysts’ average forecast of AED627.3 million.
Emirates NBD also beat analysts’ estimates on Thursday when it reported a 34.8 percent jump in quarterly profit.
Builder Arabtec closed up 1.3 percent after dropping as much as 6.5 percent early in the session on disappointing results. Arabtec earned AED103 million ($28.1 million) in the second quarter, while analysts polled by Reuters had on average forecast AED 111 million.
The company did not give any further details of its post-Ismaik restructuring. But an increase in general and administrative expenses for the second quarter may reflect lay-offs among senior managers which followed the abrupt resignation of chief executive Hasan Ismaik last month, said Sanyalak Manibhandu, manager of research at NBAD Securities.
Arabtec is expected to provide more information in an analyst call after the Eid holidays, which is expected to see UAE markets shut between Monday and Wednesday.
The rise in Arabtec shares “that we are seeing now is probably due to some more market talk about who is buying the stock again,” Manibhandu said. Investors hope Abu Dhabi state fund Aabar Investments, a major shareholder in Arabtec, will buy at least part of the 28.77 percent stake held by Ismaik.
Shares in Emaar Properties, Dubai’s largest listed developer, rose 1.9 percent. The company is expected to announce its quarterly results after the Eid break.
Abu Dhabi’s top listed developer Aldar Properties also jumped ahead of expected earnings. The stock rose 2.6 percent, helping the emirate’s benchmark add 1.1 percent.
Qatar’s benchmark slid 0.6 percent, largely because of Barwa Real Estate, which tumbled 6.8 percent.
The stock had plunged its 10 percent daily limit on Thursday after the company posted a quarterly net loss of 42.9 million riyals ($11.8 million) compared to a profit of 40.6 million riyals in the year-earlier period.
Egypt’s bourse slipped 0.1 percent. Commercial International Bank (CIB) was one of the main drags, pulling back 0.6 percent. The stock had jumped 4.4 percent on Thursday after CIB’s second-quarter results came in ahead of analysts’ estimates.
Bahrain’s bourse edged down 0.4 percent. Bahrain Telecommunications Co. (Batelco) fell 1.6 percent after posting a 22.4 percent drop in second-quarter profit on Sunday. Stock markets in Kuwait, Oman and Saudi Arabia were already closed for Eid.
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