Oil, solid earnings lift key Gulf markets; Abu Dhabi retreats

Traders wait at the Bahrain Exchange after Joe Biden won the U.S. presidency in Manama, Bahrain, November 8, 2020.REUTERS/Hamad I Mohammed

July 28 (Reuters) – Most major Gulf stocks ended higher on Thursday, buoyed by higher oil prices and solid corporate earnings, but Abu Dhabi bucked the trend and closed lower.

Oil prices, the main catalyst for Gulf financial markets, rose more than $2 a barrel on Thursday, extending gains from the previous session, as a draw in crude inventories and a rebound in U.S. gasoline demand supported investors’ risk appetite and improved prices.

Meanwhile, central banks in most Gulf countries raised key interest rates by three-quarters of a percentage point on Wednesday, in line with the Federal Reserve as their currencies are pegged to the dollar. read more

In Dubai, the main stock index (.DFMGI) Up 1.3%, boosted by a 3.9% surge in Dubai’s largest bank Emirates NBD (ENBD.DU)net profit rose 42% in the second quarter, driven by higher revenue and lower impairments. read more

According to Fadi Reyad, market analyst at CAPEX.com MENA, Dubai stocks continued to improve due to the progress of monetary policy and strong earnings from local banks such as NBD and EIB in the UAE.

Among other stocks, property developer Deyaar Development (DEYR.YOU) Shares also rose 3.1% after second-quarter net profit rose more than 300% to 32.7 million dirhams ($8.9 million).

In Qatar, the benchmark (.QSI) Slightly up 0.2%, losses in financials were offset by gains in industrials, Qatar Industries (IQCD.QA) Jump 4% and Ooredoo (ORDS.QA) rose 3.3%.

The telco reported quarterly results on Wednesday after the market closed. It made a profit of 815.6 million riyals ($221.9 million), compared with a loss of 1.15 billion riyals a year earlier.

“Qatar stocks rose as gas prices and earnings provided some support. The market still faces a price correction after a strong rebound as gas could reverse its course,” added Fadi Reyad.

Saudi Arabia Benchmark Index (.one) Saudi Cement Corp rose 0.9%, supported by materials stocks (3030.SE) and Arabian Cement (3010.SE) They climbed 1.9% and 2.6%, respectively.

The Abu Dhabi index reversed course and closed down 0.1%, pressured by the country’s largest bank, First Abu Dhabi Bank (FAB), which fell 0.8% (FAB.AD)After reporting a roughly flat second-quarter profit, the company showed caution as operating expenses rose. read more

FAB reported second-quarter profit of 2.91 billion dirhams ($792 million), up less than 1 percent from a year earlier.

Beyond the Gulf, Egypt’s Blue Chip Index (.EGX30) Up 0.9 percent, the country’s largest bank, Commercial International Bank Egypt (COMI.CA) An increase of 1.3 while Egypt Kuwait Holdings (EKHO.CA) rose 4.2%.

(1 USD = 3.7558 rials)

(1 USD = 3.6729 UAE Dirham)

(1 USD = 3.6755 Qatari Riyals)

Reporting by Shamsuddin Mohd in Bengaluru; Editing by Allison Williams

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