Abu Dhabi outperforms on FAB, Saudi index ends losing streak

Abu Dhabi stocks rebounded on Wednesday, outperforming regional peers after a surge in First Abu Dhabi Bank, while Saudi snapped a three-day losing streak on corporate earnings announcements. The Abu Dhabi index bounced back 1.9% after it lost 1.2% in the previous session, with market heavyweight First Abu Dhabi Bank (FAB) surging 3.4%.

The largest lender in the United Arab Emirates saw its biggest intraday gain since July, a day after it announced the opening of a new branch in Saudi's Al Khobar. Another branch is scheduled to open soon in Jeddah.

On Oct. 24 the lender also reported single-digit growth in third-quarter net profit, broadly in line with analyst forecasts.

In Saudi Arabia, the benchmark index gained 1.3%, with Al Rajhi Bank increasing 2.4% and National Commercial Bank up 1.6%.

Savola Group extended gains from the previous session, jumping 5.5%. On Monday, the conglomerate reported third-quarter net profit of 221.8 million riyals ($59.14 million) versus a net loss of 50.7 million riyals a year earlier.

The firm attributed the gains to higher sales and margins, an increase in the share of profits from associates and lower currency exchange losses.

PetroRabigh gained 3.2%, a day after it posted a more than 62% rise in third-quarter net profit, which it said was due to an improved profit margin for refined products and an improved operational performance.

However, Abdulmohsen Al Hokair Group For Tourism And Development plunged 4.8% after posting a third-quarter net loss of 15.5 million riyals, compared with a net profit of 1.9 million a year earlier.

The Dubai Financial Market General Index was up 0.6%, led by gains in the real estate sector.

Blue-chip developer Emaar Properties climbed 2.4% and Dubai Islamic Bank, the United Arab Emirates' largest Shariah-compliant lender, closed 0.6% up.

But, DAMAC Properties declined 1.1% after it announced no dividend due to low profitability and a weak market.

Among other stocks, UAE telecoms company du declined 2% after reporting a drop in third-quarter net profit.

Qatar's index rose 0.6%, with market heavyweight Industries Qatar and Qatar Islamic Bank gaining 1.6% and 1.2% respectively. Egypt's blue-chip index edged up 0.1%, aided by gains in Sidi Kerir Petrochemicals, which soared 10.4%.