|01 May, 2019

Mideast Stocks: Newly formed ADCB dents Abu Dhabi; major Gulf markets slide

The Abu Dhabi index was down 0.6%, led by a 2.9% decrease in Abu Dhabi Commercial Bank

Abu Dhabi's stock market dropped on Wednesday, pressured by Abu Dhabi Commercial Bank, as it traded for the first time as a merged entity after its three-way merger with Union National Bank and Al Hilal Bank.

The Abu Dhabi index was down 0.6 percent, led by a 2.9 percent decrease in Abu Dhabi Commercial Bank. The company, along with Union National Bank and Al Hilal Bank had agreed to a merger in January to create the third-largest bank in the United Arab Emirates.

First Abu Dhabi Bank continued its losing streak for the sixth straight day, falling 0.6 percent. The lender saw a fall in its first-quarter customer deposits, net interest margins and a rise in expenses.

Dubai's index slid 0.5 percent, with property firm Emaar Properties falling 3.1 percent to a one-month low as the stock traded ex-dividend.

Air Arabia slid 2.1 percent after the budget airline said it is likely to order 100 or more Airbus or Boeing jets within the next three to four months.

Middle Eastern funds plan to increase their investments in Kuwait and the United Arab Emirates over the next three months, while largely keeping their exposure to other countries in the region at current levels, according to a Reuters poll.

Saudi's index fell 0.2 percent, with Saudi Public Transport Co shedding 2 percent after posting a wider first-quarter net loss.

Bupa Arabia For Cooperative Insurance lost 1 percent after proposing a lower dividend for 2018.

Qatar's blue-chip index fell 0.3 percent as market heavyweights Commercial Bank dropped 1.7 percent and Qatar National Bank declined 1.5 percent.

Although most fund managers in the Reuters poll said they would keep their investments in Qatar at the same level, 40 percent said they would decrease them.

(Reporting by Karina Dsouza in Bengaluru Editing by Keith Weir) ((Karina.Dsouza@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 6373; Reuters Messaging: Reuters Messaging: karina.dsouza@thomsonreuters.com))

More From Equities