Abu Dhabi Shares Rise Most in 2 Weeks Before Quarterly Earnings

Abu Dhabi’s benchmark stock index advanced the most in more than two weeks after company earnings in Saudi Arabia (SABIC) beat expectations, boosting demand for Persian Gulf assets. Oil traded near the highest close in two weeks.

Abu Dhabi Commercial Bank PJSC (ADCB), the United Arab Emirates third-biggest bank by assets, gained 1.3 percent. Sorouh Real Estate Co. (SOROUH), which may post a 24 percent increase in first- quarter earnings, advanced the most in more than a week. Abu Dhabi’s ADX General Index (ADSMI) rose 0.3 percent, the most since April 1, to 2,513.01 at the 2 p.m. close in the emirate. The Bloomberg GCC 200 (BGCC200) Index was little changed at 1:16 p.m. in Riyadh and Saudi Arabia’s Tadawul All Share Index (SASEIDX) added 0.1 percent today after surging 3.2 percent yesterday.

“Earnings in Saudi Arabia have lifted sentiment here as investors await first-quarter results of the heavy-weight companies,” said Ziad Dabbas, a financial analyst at National Bank of Abu Dhabi PJSC, the U.A.E.’s second-biggest bank by assets.

Companies in the six-nation Gulf Cooperation Council have started announcing first-quarter results. Saudi Arabia’s gauge advanced the most in more than a year yesterday after first- quarter profit at Saudi Basic Industries Corp., the world’s biggest petrochemicals maker, exceeded analysts’ estimates.

Profit Outlook

Abu Dhabi Commercial may report a 5 percent increase in first-quarter profit to 612 million dirhams ($167 million), according to the median estimate of three analysts compiled by Bloomberg. The shares gained the most since April 3 to 3.23 dirhams.

Sorouh, Abu Dhabi’s second-biggest developer, advanced 0.9 percent, the most since April 10, to 1.11 dirhams. The company’s quarterly net income may increase to 80 million dirhams, the median estimate of three analysts compiled by Bloomberg shows.

Oil for May delivery increased as much as 0.3 percent to $104.51 in New York after the International Monetary Fund boosted its growth outlook and a Spanish debt sale raised more than planned, easing concern an economic slowdown will curb crude demand. The MSCI Emerging Markets Index (MXEF) advanced 0.3 percent. Gulf Arab oil exporters, including Saudi Arabia and the U.A.E., supply about a fifth of the world’s oil.

Kuwait’s Stock Exchange Price Index (KWSEIDX) rose 0.5 percent, Bahrain’s BB All Share Index (BHSEASI) advanced 0.8 percent, and Oman’s MSM 30 Index (MSM30) climbed 0.4 percent. Qatar’s QE Index (DSM) was little changed. The DFM General Index (DFMGI) fell 0.4 percent after earlier rising as much as 0.5 percent.

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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