Gulf bourses mixed in early trade; IHC lifts Abu Dhabi
Stock markets in the Gulf were mixed in early trading on Tuesday amid rising geopolitical tension in the region, while the Abu Dhabi index advanced on upbeat corporate earnings.
The Israeli military took control of the vital Rafah border crossing between Gaza and Egypt on Tuesday, pushing into the southern Gazan town after a night of air strikes and as prospects for a ceasefire deal hung in the balance.
Dubai’s benchmark stock index was down 0.2%, dragged down by losses in almost all sectors with bluechip developer Emaar Properties dropping 0.4% and Commercial Bank of Dubai sliding 2.1%.
Saudi Arabia’s benchmark stock index fell 0.4%, weighed by industry, real estate and finance. Company For Cooperative Insurance slipped 3.5% and Saudi Awwal Bank dropped 1.2%.
However, Saudi Aramco inched up 0.2% after the oil major said it expected to pay $31 billion in dividends to shareholders despite reporting lower earnings for the first quarter.
In Abu Dhabi, the benchmark stock index advanced 1% in early trade, lifted by strong corporate earnings.
International Holding Company surged 1%, after Abu Dhabi’s largest listed conglomerate IHC said on Monday it would buy back up to 5 billion dirhams ($1.36 billion) of its shares as it reported an 88% rise in quarterly net profit.
ADNOC Gas, the state-owned energy giant ADNOC’s unit, climbed 1% after it posted a 21% increase in quarterly net income.
The Qatari benchmark index edged up 0.1%, supported by a 1.4% rise in Qatar Navigation and a 0.4% gain in Qatar National Bank, the region’s largest lender.
The Israeli military has conducted airstrikes on areas in eastern Rafah near neighbourhoods that received evacuation orders, igniting concerns of a full-blown assault in the city, long threatened by Israel.
The Qatari benchmark index slipped 0.5%, with most of its sectors posting losses, led by industry, materials and finance. Qatar National Bank, the region’s largest lender, shed 0.4% and Industries Qatar slid 0.9%.
In Abu Dhabi, the benchmark index fell marginally, with Agility Global dropping 2.8% and conglomerate Multiply Group falling 2.1%. The emirate’s biggest developer Aldar Properties, however, rose 2.8%.
Saudi Arabia’s benchmark index ended flat as gains in healthcare, consumer discretionary, industry and real estate countered losses in finance, consumer staples and IT stocks.
Saudi National Bank, the kingdom’ biggest lender, slipped 2.5% and
SABIC Agri-Nutrients slid 2.1%, while Middle East Pharmaceutical added 2.3%.
Bupa Arabia for Cooperative Insurance surged 10% to 275 riyal a share, its highest level since listing in 2008, after the health insurer posted a 90.6% jump in its quarterly net profit.
Stock markets in the United Arab Emirates closed higher on Friday, tracking crude prices as the prospects of lower exports from Russia heightened investors’ risk sentiment.
Oil price - a key contributor to Gulf’s economies – extended gains to a second session on Friday with Brent crude futures rising 61 cents, or 0.74%, to $82.82 per barrel by 1114 GMT.
On Wednesday, Reuters exclusively reported that Russia plans to cut oil exports from its western ports by up to 25% in March versus this month, exceeding its announced production cuts in a bid to lift prices for its oil, three sources in the Russian oil market said.
Gains in utilities sector stocks helped Dubai’s main index to close 0.2% higher amid volatile trading session. State-run utility firm Emirates Central Cooling Systems Corp and Dubai Investments jumped 1.3% each.
Abu Dhabi benchmark index edged .01% higher, snapping a foursession losing streak, helped by a 2.2% hike in real estate developer Aldar Properties, shares of Sharjah-based Dana Gas rose 2.1%.