Wednesday, 24 January 2024

Mideast Stocks: #Dubai bourse leads Gulf markets higher on upbeat earnings

Mideast Stocks: Dubai bourse leads Gulf markets higher on upbeat earnings


Most stock markets in the Gulf ended higher on Wednesday, largely on the back of corporate earnings with the Dubai index leading the gains. Dubai's main share index advanced 1.8%, with Dubai Islamic Bank (DIB) jumping 7.7% - its biggest intraday gain since June 2020 - after reporting upbeat full-year earnings.

DIB, the biggest Islamic lender in the United Arab Emirates, on Tuesday reported a 24% increase in full-year attributable net profit to 6.80 billion dirhams ($1.85 billion) from a year earlier Also, the lender raised its 2023 dividend proposal to 45% versus 30% for the year 2022. Elsewhere, top lender Emirates NBD closed 4.8% higher, ahead of its earnings announcement.

Saudi Arabia's benchmark index gained 0.6%, led by a 1.7% rise in Etihad Atheeb Telecommunication and a 1.4% increase in auto rental firm Lumi. Elsewhere, oil giant Saudi Aramco edged 0.2% higher.

Oil - which fuels the Gulf's economy - steadied, with Brent trading near $80 a barrel, as a Chinese economic stimulus package and geopolitical tensions were offset by concerns over tepid demand and a stronger dollar.

Separately, Saudi-based Middle East Pharmaceutical Industries Company, known as Avalon Pharma, priced its initial public offering (IPO) at the top of its range, selling the shares at 82 riyals ($21.87) each on Wednesday. In Abu Dhabi, the index finished flat.

The Qatari benchmark added 0.1%, with petrochemical maker Industries Qatar gaining 2.7%. However, Islamic lender Masraf Al Rayan declined 3.8%, after reporting a 8% increase in 2023 profit. Outside the Gulf, Egypt's blue-chip index rose 0.3%, with Talaat Mostafa Holding leaping 8.4%.

Meanwhile, Egyptian economic growth will be slower than previously expected as its pound weakens, inflation cuts into purchasing power and fallout from the Gaza crisis eats into the country's main sources of foreign currency, a Reuters poll showed on Wednesday.

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