Shares in two of Abu Dhabi's top banks fell on Wednesday after fourth-quarter earnings, while other Middle East markets hardly moved as global equities and oil prices offered little positive impetus.
National Bank of Abu Dhabi (NBAD) slid 5.0 percent after posting a fourth-quarter net profit of 1.33 billion dirhams ($362 million), up 28 percent from the prior-year period and broadly in line with analysts' forecasts. NBAD's board proposed an unchanged cash dividend for 2016.
Abu Dhabi Commercial Bank lost 2.2 percent after announcing a 16 percent fall in profit to 1.0 billion dirhams. Three analysts had on average forecast a profit of 979 million dirhams.
First Gulf Bank, which is to merge with NBAD on April 1, added 0.4 percent after posting a profit of 1.53 billion dirhams, down 11 percent but above the 1.37 billion dirham average forecast of analysts.
The general Abu Dhabi market index fell 0.5 percent.
In neighbouring Dubai, the index added 0.3 percent, buoyed by advances in mid-sized companies.
Emaar Malls Group rose 0.4 percent after posting a 3.9 percent rise in fourth-quarter net profit to 452 million dirhams. EFG Hermes had forecast 466.95 million dirhams and SICO Bahrain 468.95 million dirhams.
DAMAC Properties climbed 3.0 percent. The developer is set to open its Trump-branded golf course project in Dubai in coming weeks.
Qatar's index, which was trading higher most of the day, closed flat. Qatar Electricity and Water, which was expected to announce quarterly results later on Wednesday, fell 2.2 percent.
Egypt's main index fell 0.7 percent, taking its losses since hitting a record-high close on January 17 to 6.3 percent. "This is still not a deep correction and the pullback is the normal course of action following three months of strong gains," said a Cairo-based stock broker.
Commercial International Bank (CIB) fell 0.8 percent to 75.80 Egyptian pounds after reporting a 34.8 percent rise in its fourth-quarter net income to 1.55 billion pounds ($82.9 million). The board recommended a cash dividend of 0.50 pounds for 2016.
Analysts at Cairo-based Naeem Brokerage said that despite net income coming in line with its expectations, CIB's results were negative because of a sharp rise in bad loans, which could result in higher provisioning in coming quarters and a contraction in net interest margins. "The bank is unlikely to repeat a strong performance in its trading portfolio in the coming quarter, meanwhile the return on equity has declined, which directly impacts valuation," Naeem said. It has a "reduce" recommendation on CIB with a target price of 55.2 pounds.
In Riyadh, the index closed nearly flat. But Etihad Atheeb Telecommunication jumped 9.4 percent in heavy trade after saying it had signed a deal with top
telecommunications operator Saudi Telecom Co to sell it some of its tower network for 230 million riyals ($61.3 million). STC closed 0.4 percent higher.
Banks were weak with three-quarters of the 12 listed lenders declining. Alinma Bank was the worst performer in the sector, dropping 2.3 percent.
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