Banks lift Abu Dhabi market index

Abu Dhabi’s heavyweight banks gained yesterday after posting above-estimate earnings, lifting the emirate’s index, while other Gulf markets were mixed. National Bank of Abu Dhabi (NBAD) climbed 0.9 percent. It posted a 12 percent rise in quarterly profit, with deposits up 23.6 percent quarter-on-quarter. “Earnings from the UAE lack the wow-factor so far ... NBAD’s deposits growth is surely impressive and there might be more to that than meets the eye,” said Sleiman Aboulhosn, assistant fund manager at Al-Masah Capital. Abu Dhabi Commercial Bank gained 2.2 percent. Its quarterly numbers also beat estimates. Aldar Properties and Sorouh Real Estate rose 1.8 and 0.9 percent respectively. The emirate’s index finished 0.3 percent higher, up for a third day since Sunday’s nine-week low. “The crucial thing will be earnings data from real estate companies like Emaar Properties, Aldar and Sorouh, which will set the tone on where the market will go from here,” said Ibrahim Masood, senior investment officer at Mashreq bank. Dubai’s benchmark slipped 0.6 percent, with losers outnumbering gainers 16 to five as investors booked profits from Tuesday’s 1.8 percent rise. Dubai Financial Market and Emaar slipped 3.4 and 0.6 percent respectively. Builder Arabtec added 0.3 percent after sources told Reuters a consortium including Arabtec is close to securing an estimated $3 billion contract for the expansion of Abu Dhabi’s international airport. Emirates NBD dropped 2.8 percent. Its quarterly profit fell 55 percent, but beat analyst forecasts. In Oman, telecoms operator Nawras lost 4.4 percent after it reported a 19.1 percent fall in first-quarter net profit. Muscat’s index shed 0.7 percent, down for a fifth straight session from a 10-month high. In Qatar, the index eased 0.1 percent, closing lower for a third day.