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Jan 27 (Reuters) – Abu Dhabi shares closed more than 2 percent lower on Friday, hitting a three-month low, after its largest bank by assets, First Abu Dhabi Bank, reported weaker-than-expected earnings.
Abu Dhabi Index (.FTFADGI) fell 2.7%, the biggest intraday drop since mid-May, dragged down by a 4.8% drop in First Abu Dhabi Bank (FAB.AD).
On Thursday, the bank reported fourth-quarter net profit of 2.5 billion dirhams ($680.66 million), down 26 percent from a year ago and missing analysts’ forecast of 2.95 percent billion dirhams.
The lender also cut its annual cash dividend by 26% to 52 fils per share from 2021.
Among other losers, state-owned integrated utility Abu Dhabi National Energy Company (also known as TAQA) (TAQA.AD) fell 8.2 percent, while investment firm Multiply Group (Multiply Ads) Plummeted 6.7%.
Abu Dhabi index continues to fall under pressure
Daniel Takieddine, chief executive of BDSwiss Middle East and North Africa, said First Abu Dhabi Bank was underperforming.
Daniel said the dovish performance in the oil market also left the stock market without much support.
Dubai’s benchmark index (.DFMGI) It closed down 0.8 percent, dragged down by losses in utilities and index heavyweight real estate stocks.
Shares in Emirates Central Cooling Systems (Authorization.DU) fell 4.6 percent, its worst day since listing, while blue-chip developer Emaar Properties (EMAR. YOU) down 1.6%
($1 = 3.6729 UAE Dirhams)
Reporting by Mohd Edrees in Bengaluru; Editing by Nivedita Bhattacharjee
Our standards: Thomson Reuters Trust Principles.
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