#Dubai Stocks Fall Most in Mideast as Earnings Roll In: Inside EM - Bloomberg

Dubai Stocks Fall Most in Mideast as Earnings Roll In: Inside EM - Bloomberg

Dubai stocks led losses in the Middle East as companies started reporting results across the region and the number of coronavirus cases surged.

Profitability for lenders in the Gulf Arab region remains under pressure, with disruptions to trade and travel continuing to rattle the energy-rich region. Qatar National Bank QPSC, the Middle East’s biggest lender, reported last week a 16% drop in net income for 2020. Some banks in Oman also published results that showed a decline from last year. Qatar Islamic Bank SAQ is expected to publish results Sunday.

The focus this week “will be on banks as they will be the first to report 4Q earnings in the United Arab Emirates,” said Harshjit Oza, head of research at Abu Dhabi-based International Securities. “We are expecting improved sequential performance in general for the sector.”

The DFM General Index dropped as much as 1.4%, with the biggest-listed lender Emirates NBD PJSC falling 1.3% and dragging the index down by the most. Equity gauges in Abu Dhabi and Riyadh lost 0.2% each, while those in Oman, Kuwait, Bahrain and Qatar climbed as much as 0.3%.

Dividend-paying stocks will also be in the spotlight, Oza said, citing Abu Dhabi-based companies including Aldar Properties PJSC and First Abu Dhabi Bank PJSC.