Banks boost Gulf markets despite weak global environment

DUBAI / Reuters

Banking shares that had been beaten down earlier this month by fears of slowing global economic growth headed for a seventh day of gains on Thursday, boosting Gulf stock markets despite weakness in Asian bourses
and oil prices. The Saudi bank sector has been strong since last week’s big international bond sale by the government partially eased fears about a liquidity drought in the economy, and on Thursday morning the sector index was up 1.4 percent.
This helped the overall Saudi stock market index climb 0.8 percent. Most petrochemical shares underperformed but PetroRabigh added 4.4 percent after saying it remained committed to executing a rights issue.
Abu Dhabi’s First Gulf Bank rose 2.3 percent after reporting a rise in third-quarter net profit to 1.86 billion dirhams from 1.42 billion, partly because of gains from real estate sales. Analysts’ average forecast was for 1.37 billion. National Bank of Abu Dhabi climbed 1.2 percent after reporting a flat third-quarter profit in line with analysts’ estimates, and Abu Dhabi’s main stock market index rose 0.6 percent.
However, telecommunications oper- ator Etisalat edged down 0.3 percent after missing analysts’ forecasts with
a net profit after a royalty payment
of 1.9 billion dirhams. Analysts
polled by Reuters had expected 2.24
billion dirhams.
Dubai’s index gained 0.5 percent as Dubai Islamic Bank rose 0.8 percent. Emaar Properties climbed 1.2 percent.
Qatar’s index edged up 0.2 percent as Qatar National bank added 0.4 percent. But investment firm Aamal , the most heavily traded stock, fell 1.4 percent after reporting a 3.6 percent drop in third-quarter profit.
Gulf International Services sank 3.1 percent after reporting an 87-percent fall in third-quarter net profit to
28.3 million riyals ($7.8 million). QNB Financial Services had forecast 78.2 million riyals.