DUBAI: Union National Bank (UNB) helped limit losses on Abu Dhabi's index on Sunday after posting a 23 percent net profit rise, while other Gulf markets were mixed after a dip in world stocks over US debt concerns.
The lender jumped 4.2 percent after its earnings beat forecasts. The emirate's three top heavyweights dragged the index 0.3 percent lower.
Telco Etisalat lost 0.5 percent, National Bank of Abu Dhabi fell 1.3 percent and First Gulf Bank shed 1.2 percent.
"In the UAE (banks), I think it is quite clear that growth is still a bit elusive," said Ibrahim Masood, senior investment officer at Mashreq bank.
"More importantly, credit conditions seem to be stabilising, with no significant accretion of new problem loans. That is the most important element for my money."
Bargain hunters helped lift Dubai's active stocks.
Emaar Properties ended 2.1 percent higher, rising from Thursday's four-month low. Dubai Financial Market climbed 1.8 percent despite posting a 46-percent-drop in second-quarter net profit.
Dubai Islamic Bank advanced 3 percent after its quarterly earnings beat forecasts.
In Oman, heavyweight Bank Muscat slumped to a two-month low, dragging the sultanate's index.
The heavyweight lender fell 1.1 percent to its lowest close since May 30 and Muscat's index dipped 0.7 percent.
"Despite reporting stronger Q2 earnings, Bank Muscat stock is trading down on the global uncertainties continues to haunt our markets," said Kanaga Sundar, Gulf Baader Capital Markets head of research.
"The current trading levels look attractive for the medium term and the investors can accumulate on dips once the uncertainty fades."
Other bluechips were also down with Oman Telecommunications Co declining 1 percent and Bank Dhofar dropping 3.3 percent.
World stocks suffered their biggest weekly loss in almost a year on Friday as investors piled into safe-haven assets on worries about sovereign debt crises on both sides of the Atlantic and data showing meager growth in the US economy.
"The US debt ceiling concerns continue to impact the markets in the region. No one wants to take the risk into making fresh investments," Sundar added.
Doha's heavyweight banking stocks rose on valuations, lifting Qatar's index from a four-week low.
Commercial Bank of Qatar (CBQ) gained 0.3 percent. It had reported a forecast-beating 24.9 percent jump in quarterly earnings on Wednesday.
Qatar's central bank earlier this year ordered conventional lenders to close down their Islamic operations by the end of 2011, amid worries of overlap between the two.
"Surprisingly, there did not seem to be that much impact of the recent regulations on retail banking," said Mashreq's Masood. "CBQ posted impressive growth, somewhat contrary to general expectations."
In a similar move, Saudi Arabia's index climbed 0.6 percent, rebounding from Saturday's four-month low.
Banks rose with Samba Financial Group gaining 0.2 percent and Riyadh Bank climbing 1.6 percent.
Copyright Reuters, 2011
Comments
Comments are closed.