Abu Dhabi bourse outperforms, led by gains in IHC

• Telecom firm Ooredoo fined 3.5m riyals for violation

• HSBC commits $5bn in corporate lending to help UAE growth

DUBAI: The Abu Dhabi stock market ended higher on Sunday, outperforming its Gulf peers led by a surge in International Holding (IHC) shares following the listing of a subsidiary, while the Qatari index was weighed down by telecoms firm Ooredoo.

IHC became Abu Dhabi's most valuable listed company after the listing of Alpha Dhabi Holding, in which IHC holds a 45% stake and which operates in the healthcare, construction and hospitality sectors.

Shares in Alpha Dhabi Holding opened at 20 dirhams a share, but eased to 15 dirhams by close, giving it a market value of 150 billion dirhams ($40.8 billion). IHC shares jumped 15%.

The Abu Dhabi index advanced 1.9%, its biggest intraday gain in over a month.

IHC has gone through rapid expansion across its major business sectors. Last month it posted a net profit of 1.5 billion dirhams for the first quarter, up from 112.2 million dirhams a year earlier. In Qatar, the index slipped 0.2%, hurt by a 3.8% fall in Ooredoo.

The Financial Sanctions Committee at the Communications Regulatory Authority has imposed a 3.5 million riyals ($933,308) financial sanction on Ooredoo for violating instructions issued by the authority.

Dubai's main share index gained 0.5%, with blue-chip developer Emaar Properties rising 1.2%, while its unit Emaar Malls finished 1.5% higher.

HSBC said on Sunday it is committing $5 billion in lending to "strong" companies in the United Arab Emirates to help drive the Gulf country's growth plans.

The UAE's economy suffered in 2020, as vital sectors like tourism and hospitality were crippled by the Covid-19 pandemic. Saudi Arabia's benchmark index added 0.4%, with Sahara International Petrochemical Company leaping over 5%, extending gains from the previous session after it proposed a first-half dividend of 0.75 riyal per share.

On Thursday, Sipchem also said in a separate filing it planned to mothball Gulf Advanced Cable Insulation Company, a move that would positively impact its future results. Outside the Gulf, Egypt's blue-chip index added 0.3%, helped by a 0.5% rise in Commercial International Bank.