Mixed fortunes in the banking sector
Banking shares slipped in Saudi Arabia and Qatar yesterday as investors digested a mixed bag of results.
Banque Saudi Fransi, which reported lower second quarter earnings on Tuesday, was down 4.1 per cent. The lender disclosed a profit of 921 million riyals in the three months to June 30, down from 1.01bn riyals a year earlier.
National Commercial Bank lost 0.6 per cent, even after the kingdom’s largest lender on Tuesday reported a 6.7 per cent rise in second-quarter profit to 2.58bn riyals.
Arab National Bank was down 0.6 per cent after the lender announced an 8.3 percent rise in second-quarter net profit to 919.1m riyals.
The Saudi index slipped 0.1 per cent.
Qatar’s benchmark dropped, weighed down by financials and real estate. Qatar Islamic Bank and Qatar International Islamic Bank fell 0.8 per cent and 0.4 per cent, respectively.
Barwa Real Estate and United Development lost 0.4 per cent and 0.3 per cent respectively.
The Dubai index rose, with Emaar Properties seeing the highest trading volume and rising 0.8 per cent. The property firm on Tuesday provided a project update on its Dubai creek harbour development.
The emirate’s biggest lender Emirates NBD which agreed in May to buy Turkey’s Denizbank, gained 2.4 per cent yesterday.
“Emirates NBD is seeing action – investors are brushing aside the decline of the Turkish lira and focusing on the strength in core operations as reported last week,” said Vrajesh Bhandarier at Al Mal Capital in Dubai.
Turkey’s currency has lost 20 per cent of its value this year.
National Central Cooling Company, also known as Tabreed, gained 1.6 per cent.
In Abu Dhabi, where the index rose 1.1 per cent, First Abu Dhabi Bank climbed 2.6 per cent a day after the lender reported a 19 per cent year-onyear gain in quarterly profit to Dh3.1bn.
Higher oil prices boosted shares of energy companies on the Abu Dhabi exchange.
Oil prices rose yesterday after data showed US crude inventories fell more than expected, easing worries about oversupply that have dragged on markets in recent weeks.
Abu Dhabi National Energy Co or Taqa jumped 4.2 per cent, while Dana Gas gained 0.9 per cent.