|11 November, 2019

Mideast Stocks: Dubai rebounds on earnings, Saudi extends gains

Saudi Amiantit sees biggest gain in 6 months

An Emirates NBD counter is seen as traders monitor stocks at the Dubai Financial Market at Dubai World Trade Center, February 2, 2012. Image for illustrative purposes.

An Emirates NBD counter is seen as traders monitor stocks at the Dubai Financial Market at Dubai World Trade Center, February 2, 2012. Image for illustrative purposes.

REUTERS/Mohamed Al-Sayaghi

Dubai's stock market rebounded on Monday, supported by real estate shares and corporate earnings, as Saudi rallied on the back of financials.

Dubai's index rose 0.5% with Emirates NBD gaining 0.9%, while Emaar Properties was up 1% a day after reporting a 20% rise in third-quarter net profit.

The profit came despite a prolonged slowdown in the emirate's property sector, where the supply glut has sent residential prices sliding by at least a quarter since mid-2014. 

The blue-chip developer's unit Emaar Development advanced 3.9%. On Sunday, it reported nine-month net profit of 2.07 billion dirhams ($563.60 million).

Air Arabia AIRA.DU added 2.1%, as the third-quarter net profit of United Arab Emirates's only listed airline jumped 57%, which it attributed to a 10% rise in passengers carried from its hubs in the UAE, Morocco and Egypt.

In Saudi Arabia, the benchmark index was up 0.6%, with Al Rajhi Bank rising 0.5% and Saudi Basic Industries (SABIC) increasing 1.3%, in its fifth day of gains.

Saudi Aramco in its initial public offering prospectus said it expected to close its acquisition of Sabic in the first half of next year.

Saudi Arabian Amiantit soared 9.9%, its biggest gain since May. The firm said it had reduced the accumulated losses to 1.4% of capital. 

In Qatar, the index edged up 0.4%, snapping three straight session losses, with Gulf's largest lender Qatar National Bank increasing 1.1% and Qatar International Islamic Bank adding 1.8%.

In Abu Dhabi, however, the index extended the losses for a straight fourth day to close 0.1% lower, as lender Abu Dhabi Commercial Bank slid 0.9% and First Abu Dhabi Bank was down 0.1%.

Dana Gas jumped 4%. The energy firm said on Sunday its collections from Egypt, UAE and Iraq's Kurdistan increased 16.7% to $230 million in the nine-month period. 

Egypt's blue-chip index ended 0.2% lower, as the country's largest lender, Commercial International Bank, slipped 0.4 and El Sewedy Electric declined 2.2%.

The latter reported third-quarter net profit of 829 million Egyptian pounds ($51.52 million), compared with 1.13 billion Egyptian pounds a year earlier. 

($1 = 3.6728 UAE dirham)

($1 = 16.0900 Egyptian pounds)

(Reporting by Shamsuddin Mohd in Bengaluru, editing by Ed Osmond) ((shamsuddin.mohd@thomsonreuters.com; +918067497252;))

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