Abu Dhabi Stocks Rise for Ninth Day on Earnings
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. (SOROUH) gained 0.9 percent. Emirates Telecommunications Corp. (ETISALAT), the biggest United Arab Emirates phone company which last month reported a better-than-expected 17 percent profit increase, gained for a fourth day. The ADX General Index (ADSMI) climbed 0.5 percent to 2,589.50, the highest since March 21 and the longest winning streak since March 4, at the close in the emirate. The measure has advanced 3.3 percent so far this month. Dubai’s DFM General Index (DFMGI) fell 0.3 percent and Qatar’s QE Index added 0.1 percent.
U.A.E. stock markets reopened today after the Eid holiday, which marked the end of the Islamic month of fasting. Saudi Arabia (SABIC)’s market will resume trading Aug. 25. About 34 million shares traded in Abu Dhabi today, compared with a 12-month daily average of 59 million.
“Investors continue to be bullish on U.A.E. 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 Abu Dhabi-based Al Fajer Securities.
Crude for October delivery rose as much as 0.4 percent to $97.07 a barrel in New York as risks to global supplies countered concern that an economic slowdown will curtail fuel consumption. Gulf Arab oil exporters, including Qatar and the U.A.E., supply about a fifth of the world’s oil.
The U.A.E. economy will grow 3.4 percent 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 percent this year, according to the government.
Sorouh, the Abu Dhabi developer that’s in merger talks with Aldar Properties PJSC (ALDAR), 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 percent 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 (RAKBANK) PSC added 0.3 percent after the lender’s second-quarter profit climbed 16 percent, helped by higher interest income and lower impairment charges.
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