Abu Dhabi shares soar on the back of oil trade
Abu Dhabi shares rose for a ninth day, the longest stretch of gains since March, after earnings at the emirate's companies beat estimates and oil traded near a three-month high. Sorouh Real Estate Co. gained 0.9 per cent.
Emirates Telecommunications Corp., the biggest United Arab Emirates phone company which last month reported a better-than-expected 17 per cent profit increase, gained for a fourth day. The ADX General Index climbed 0.5 per cent to 2,589.50, the highest since March 21 and the longest winning streak since March 4. The measure has advanced 3.3 per cent so far this month.
Dubai's DFM General Index fell 0.3 per cent and Qatar's QE Index added 0.1 per cent.
UAE stock markets reopened yesterday after the Eid holiday, which marked the end of the Islamic month of fasting. Saudi Arabia's market will resume trading on August 25. About 34 million shares traded in Abu Dhabi yesterday.
"Investors continue to be bullish on UAE stocks as work hours returned to normal, buoyed by solid earnings from most banks and real estate developers and while oil prices are stabilized at a relatively high level,- said Nabil Farhat, a partner at Al Fajer Securities.
Crude for October delivery rose as much as 0.4 per cent to $97.07 a barrel.
on the New York Mercantile Exchange after a report showed stockpiles declined the most in three weeks in the US, the world's biggest crude consumer. Gulf oil exporters, including Qatar and the UAE, supply about a fifth of the world's oil.
The UAE economy will grow 3.4 per cent this year, the second-fastest pace in four years, according to the median forecast of 13 analysts compiled by Bloomberg. Growth in Dubai, which was on the brink of a debt default in 2009, will quicken to as much as 5 per cent this year, according to the government.
Sorouh, the Abu Dhabi developer that's in merger talks with Aldar Properties PJSC, last month said net income in the second quarter rose to 148.2 million dirhams ($40 million), beating the 52 million-dirham median estimate of three analysts compiled by Bloomberg. The shares rose to 1.09 dirhams.
Etisalat, the company with the heaviest weighting on Abu Dhabi's index, gained 1.4 per cent to 9.46 dirhams, the highest close since June 27. Second-quarter profit rose to 1.87 billion dirhams, also topping estimates.
National Bank of Ras Al-Khaimah PSC rose 0.3 per cent after the lender's second-quarter profit climbed 16 per cent, helped by higher interest income and lower impairment charges.
The Bloomberg GCC 200 Index increased 0.1 per cent. Kuwait's SE Price Index climbed 0.8 per cent and Bahrain's measure gained 0.2 per cent.
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