Dubai stocks up on bank earnings

Dubai stocks rose as much as 0.7 per cent in early trading yesterday on the back of strong bank earnings, before pulling back to finish up just 0.1 per cent at 3,582.25.

Qatari stocks led gains across the Arabian Gulf, in spite of disappointing earnings from the country’s third largest lender Commercial Bank of Qatar. Abu Dhabi stocks finished slightly higher.

Emirates NBD, Dubai’s largest lender, gained 0.9 per cent after it posted a 6 per cent rise in second-quarter net profit to Dh2.02 billion, at the high end of analysts’ forecasts. Trade was very thin as the stock is tightly held.

Dubai Islamic Bank, the second heaviest weighted stock on Dubai’s share index, closed up 0.4 per cent after posting a 14-per cent increase in second-quarter net profit to Dh1.06bn.

Emaar Properties was the pick of the other gainers on the index, climbing 1 per cent to Dh8.19. Damac Properties fell for a second consecutive day, closing off 1.7 per cent.

The Abu Dhabi Securities Exchange General Index ended a quiet day up 0.5 per cent at 4,594.16, thanks to gains by Etisalat, First Abu Dhabi Bank and ADCB.

Saudi Arabia’s index closed down 0.4 per cent. Al Rajhi Bank, the kingdom’s second largest lender by assets, ended the day down 1.4 per cent after its stock went ex-dividend yesterday . But Alinma Bank surged 2.9 per cent after reporting that Q2 net profit came in at 488m Saudi riyals versus 409m riyals a year ago, well ahead of analyst forecasts.

Qatar’s index ended the day up 1.1 per cent as Qatar National Bank, the country’s largest bank, gained 4.4 per cent to 143 Qatari riyals. It has now regained almost all its losses since it closed at 145.30 riyals on June 4, just before other Arabian Gulf states imposed sanctions on Qatar.

Commercial Bank of Qatar, however, dropped 0.3 per cent after reporting a 58.4 per cent slump in second-quarter net profit to 88.4m riyals; analysts had forecast 118.3m riyals on average.

The decline, owing to provisions for bad debt, was part of a dismal earnings run that began long before the diplomatic crisis. Chief executive Joseph Abraham said in April that provisions would remain high for the next few quarters.