ADX bucks the wider regional trend

Abu Dhabi shares ended 1.1 per cent higher yesterday, bucking weakness in other major Arabian Gulf markets which were dragged down by concerns about the Turkish economy as market activity slowed ahead of a Muslim festival next week.

Abu Dhabi index was boosted by gains in market heavyweight First Abu Dhabi Bank, which ended 2.5 per cent higher, and telco Etisalat, which rose 1.2 per cent.

FAB, the UAE’s biggest lender, has benefited from its lack of major exposure to Turkey and continued interest after its strong quarterly earnings.

The stock is up 38 per cent so far this year, one of the biggest gainers on the Abu Dhabi index.

Dana Gas was down 2.6 per cent after it reported a 14 per cent decrease in second-quarter net profit on Tuesday, citing one-off sukuk restructuring costs.

Saudi Arabia, the region’s biggest market, fell 0.4 per cent in thin trade in the buildup to the Muslim festival of Eid Al Adha. Gulf markets will be mostly closed next week.

Financials were weak, with Al Rajhi Bank falling 1.2 per cent and Samba Financial down 0.83 per cent.

A Morgan Stanley note said despite limited upside, it continues to like Saudi banks within the emerging Emea region, with Samba Financial Group its top selection.

“Saudi banks are highly capitalised, highly profitable, highly cost-efficient, tightly monitored and regulated,” the note said.

Dubai shares fell 0.8 per cent, hit by weakness in property firms. Damac Properties fell 1.4 per cent, extending losses from a day earlier when it reported a 46 per cent drop in profit from continuing operations.

Market heavyweight Emaar Properties fell 1.6 per cent.

Dubai lender Emirates NBD fell 2.3 per cent, as investors remained concerned about its deal in May to buy Turkey’s Denizbank in a $3.2 billion deal.

In Kuwait, Burgan Bank fell 1.1 per cent due to concerns about its exposure to Turkey. Burgan Bank said it had not seen any major impact on its profitability as a result of the fall in the Turkish lira.

The Qatar index fell 0.5 per cent due to weakness in lender Masraf Al Rayan, which fell 2 per cent and a 2 per cent drop in Vodafone Qatar.