Emirates NBD’s robust results ease investor nerves on DFM

LENDER ENDS NEARLY 1 % HIGHER AT DH6.50 AFTER POSTING A GOOD PROFIT

The oil-triggered selloff abated on Dubai index after a top bank posted a stronger than expected net profit. The Dubai Financial Market General Index ended 0.28 per cent lower at 2,677.50, after posting a high of 2,755.70.

“Emirates NBD results were seen as a positive for Dubai index. Markets were looking at worse performance at operating and net level,” Sanyalaksna Manibhandu, manager of research at the National Bank of Abu Dhabi Securities, told Gulf News, adding that “the buying that came through at the start did not sustain.”

The government-backed lender proposed a dividend of 40 fils a share, up from 35 fils the previous year, even as it posted 39 per cent jump in net profit for 2015.

“Fundamentally, if you believe that Emirates NBD could be repeated across the banking system, the fundamental improvement was taken by some as a chance to take some risk off the table,” said Manibhandu.

Emirates NBD ended nearly 1 per cent higher at Dh6.50. Arabtec ended 1.92 per cent higher at Dh1.06, while Dubai Investments also rose 0.62 per cent to end at Dh1.62. targeting a stronger correction on the Dubai index, Menacorp said in a report.

The index has shed more than 15 per cent since the start of the year, and yesterday it traded near its lowest level in more than two years. considerations outweigh international considerations,” Manibhandu said.

Tabreed’s results are due next week, among others, which investors would be looking at.

The Abu Dhabi Securities Exchange General Index closed 0.20 per cent higher at 3,794.98.

“The long-term picture remains in a range, with bearish momentum on [the] Abu Dhabi index prevailing and reaching the lower boundaries outlined in December 2014,” Menacorp said in a report.

Dana Gas ended 0.41 per cent lower at Dh4.65, while Abu Dhabi Commercial Bank ended more than 1 per cent higher at Dh5.40. Union National Bank ended more than 4 per cent lower at Dh4.10 and Aldar Properties closed more than 4 per cent lower at Dh1.94.

The long term continues to be in a strong downtrend for Aldar Properties, currently supported by the Dh1.90 low that previously provided support in December 2014, the Menacorp note added.

Out of a total of 28 stocks traded on the exchange, the shares of 16 firms declined, while those of 10 firms rose.

Elsewhere in the Gulf, the Saudi Arabia’s Tadawul All Share Index (Tasi) closed 0.09 per cent higher at 5,525.12, while the Qatar Exchange index closed 0.13 per cent lower at 8,516.82.