FAB helps to boost Abu Dhabi index

The Abu Dhabi Securities Exchange yesterday climbed 0.3 per cent to 5,235 points, lifted by heavyweight First Abu Dhabi Bank, which was up 1 per cent.

The lender, the largest in the UAE, last week rose 4 per cent after posting a 5 per cent increase in second-quarter net profit.

FAB gave a boost to the sector, with Abu Dhabi Islamic Bank and Abu Dhabi Commercial Bank gaining 0.8 per cent and 0.6 per cent, respectively. Elsewhere, Eshraq Investment gained 0.7 per cent, while Arkan was up 1.1 per cent.

Saudi Arabia’s stock index declined, as political concerns weighed on investors after Iran’s seizure of a British-flagged tanker in the Arabian Gulf. Britain called Iran’s action against the Stena Impero in the Strait of Hormuz on Friday a “hostile act”.

“Markets are following the negative global lead as geopolitical risks take centre stage following the UK tanker seizure,” said Vrajesh Bhandari, senior portfolio manager at Al Mal Capital in Dubai.

In Dubai the index was 0.9 per cent lower at 2,739 points. Gainers included Al Salam Sudan, up 4.1 per cent, telco du, which gained 0.9 per cent and National Cement Company, which closed up 0.4 per cent.

Fallers included construction company Arabtec, down 2.3 per cent, Damac Properties declining 2 per cent, and Emaar Development slipping 1.6 per cent.

Saudi shares shed 0.8 per cent to 8,958 points, with financial stocks registering losses ahead of an expected interest rate cut this month by the US Federal Reserve.

Saudi British Bank was down 2.2 per cent, Arab National Bank slipped 1.7 per cent, National Commercial Bank was 1.1 per cent lower, and Saudi Investment Bank was down 0.6 per cent.

Other Gulf markets were mixed. In Kuwait, profit-taking sent the index down 1.2 per cent to 6,664 points.

“Kuwait is the best-performing Mena market this year so far, up almost 20 per cent, and so it is not surprising that some investors are taking profits,” said Mr Bhandari.

Egypt’s blue-chip index lost 0.7 to 13,576 points, weighed down by real estate. Cairo Investment and Real Estate Development tumbled 4.2 per cent and Orascom Development dropped 2.9 per cent.