Abu Dhabi leads fall in Gulf markets, Saudi stocks rise | Reuters
Abu Dhabi stock market slid on Thursday on weak earnings from heavyweight companies, while the Saudi Arabian shares ended higher amid firm oil prices.
In Abu Dhabi, the index (.FTFADGI) declined 1.7%, its worst day since September, dragged down by an 8% plunge in the country's biggest lender, First Abu Dhabi Bank (FAB.AD), that logged its lowest close in more than eight months.
The bank reported a 26% drop in fourth-quarter net profit, missing analyst estimates, though annual net profit rose 7%.
The lender also slashed yearly cash dividend by 26% to 52 fils per share compared with 2021.
Al Seer Marine Supplies and Equipment (ASM.AD) dropped 1.1% after it reported a fall in earnings, recording annual net profit of 1.01 billion dirhams, down from 2.52 billion dirhams a year earlier.
The benchmark index (.TASI) in Saudi Arabia added 0.1%, helped by gains in healthcare, financial and materials stocks with Dr Sulaiman Al-Habib Medical Services (4013.SE) rising 2% and Saudi Arabian Mining (1211.SE) climbing 1.4%.
The world's largest Islamic bank by market capitalization, Al Rajhi Bank (1120.SE), surged 1.4%, extending its rally since last Thursday.
Dubai's benchmark index (.DFMGI) rose marginally.
Most real estate stocks in the index dropped, with heavyweight Emaar Properties (EMAR.DU) down 1%, while the utilities and finance sectors stocks rose with Emirates Central Cooling Systems (EMPOWER.DU) adding 0.7% and lender Emirates NBD (ENBD) (ENBD.DU) gaining 0.4%.
Dubai's biggest lender, ENBD, reported a 40% jump in 2022 net profit to 13 billion dirhams ($3.5 billion) on Thursday, helped by higher interest rates and transaction volumes which boosted its overall income.
Qatari Index (.QSI) slipped 0.5%, ending a five-day winning streak, as most of the index constituents were in the negative territory.
Index heavyweights Qatar International Islamic Bank (QIIB.QA) and Qatar Islamic Bank (QISB.QA) declined 3.5% and 0.8%, respectively.
"The Qatari stock market returned to the downside as traders moved to secure their gains after successive gains," said Farah Mourad, Senior Market Analyst of XTB MENA.
"The main index remains under pressure from the continuously falling natural gas prices".
Short Seller Nate Anderson's Hindenburg Targets Billionaire Gautam Adani - Bloomberg
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Emirates NBD 2022 profits up 40% by $3.54bln
Emirates NBD saw its profits rise by 40% in 2022 to reach AED 13 billion ($3.54 billion) after an “exceptionally strong” fourth quarter.
Dubai’s largest bank reported a total income of AED 32.5 billion over the year, an increase of 36% year-on-year.
Profits in the fourth quarter were up 94% YoY to AED 3.9 billion, the bank said.
Chairman Sheikh Ahmed Ahmed bin Saeed Al Maktoum said Emirates NBD was proposing a 20% increase in dividend to 60 fils per share.
Emirates NBD’s assets reached AED 742 billion in 2022, up by 8% from 2021.
The bank’s Islamic arm, Emirates Islamic, reported its highest ever net profit of AED 1.24 billion, up 51% on 2021.
Income reached AED 3.18 billion for 2022, up 33%.
UAE's biggest bank FAB’s Q4 net profit falls 26%; misses estimate
The UAE’s biggest lender First Abu Dhabi Bank (FAB) posted a Q4 2022 net profit of 2.46 billion dirhams ($ million), 26% lower year-on-year (YoY) as impairment charges and operating expenses soared.
For FY 2022, the bank made a net profit of AED 13.41 billion, 7% higher YoY.
The efforts missed Refinitiv's mean analysts’ estimates of AED2.95 billion net profit for the quarter and AED13.78 billion for the full year.
On a quarterly basis, Q4 net profit was 16% lower, according to the lender's statement on Thursday on Abu Dhabi's ADX exchange where its shares trade.
Impairment charges for Q4 was 55% higher at AED1.1 billion while operating expenses jumped 35% YoY to AED2 billion.
FAB’s board of directors has recommended a cash dividend per share of 52 fils for FY 2022, compared to 49 fils in 2021.
Abu Dhabi's ADX expects increased listings this year | Reuters
The Abu Dhabi stock exchange expects an increase in listings this year, even as global economies grapple with high inflation and rising interest rates, its chairman said.
"We have a healthy pipeline of IPOs and listings with aspirations to surpass 2022. There will always be challenges, but also opportunities," Hisham Khalid Malak, chairman of the Abu Dhabi Securities Exchange (ADX) told Reuters on Wednesday.
The global picture is "starting to look better than expected, with a soft landing now forecast in the United States", he said, adding that "Europe is also starting to look better and China is opening up".
The Gulf's second-biggest market last year featured five initial public offerings (IPOs) and two dual listings, as well as listings for six exchange-traded funds and one blank-cheque company. It also had one listing on its secondary market, which connects investors with smaller privately owned businesses.
Most major Gulf bourses fall, Emirates NBD lifts Dubai | Reuters
Most stock markets in the Gulf were slightly lower on Thursday, mirroring volatility in crude prices, while Dubai bucked the trend as its largest lender reported strong earnings.
Crude prices - a key catalyst for Gulf's financial market - were volatile on Thursday ahead of the OPEC+ meeting and the looming European Union ban on Russian refined products.
Brent crude were up 3 cents, or 0.03%, to $86.15 per barrel by 0742 GMT.
Abu Dhabi's benchmark index (.FTFADGI) retreated 1%, weighed down by a 4.3% decline in UAE's largest lender First Abu Dhabi Bank (FAB.AD) as the bank reported a 26% drop in fourth-quarter net profit, although it had a 7% rise in 2022 net profit.
The lender missed analyst estimates of 2.95 billion dirhams ($803.22 million) in fourth-quarter net profit, according to Refinitiv data.
The lender also decreased annual cash dividend by 26% to 52 fils per share from 2021.
Sharjah Islamic Bank (SIB.AD), however, jumped 4% after the bank posted 27% growth in full-year net profit to 650.9 million dirhams ($177.23 million).
Benchmark Qatari index (.QSI) edged down 0.2%, breaking a five-day winning streak, as most of the index constituents were in negative territory.
Index heavyweight Islamic lender Qatar Islamic Bank (QISB.QA) and petrochemical maker Industries Qatar (IQCD.QA) declined 0.9% and 0.7%, respectively.
Separately, Qatar is in talks to acquire a stake from French company TotalEnergies' (TTEF.PA) $27 billion cluster of energy projects in Iraq, three sources told Reuters.
Saudi Arabia's benchmark stock index (.TASI) dropped 0.2%, on course to snap a five-day rally, with luxury property developer Retal Urban Development (4322.SE) falling 0.7% and Riyad Bank losing 1.4%.
Dubai's main share index (.DFMGI), however, gained 0.1%, supported by a 1.2% hike in Dubai's largest lender Emirates NBD bank (ENBD.DU) as the lender reported a 40% jump in 2022 net profit to 13 billion dirhams ($3.54 billion), helped by higher interest rates and transaction volumes.
Emirates NBD also proposed a 20% increase in dividend to 60 fils a share.
