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DUBAI / Reuters
Abu Dhabi’s banks were mixed in early trade on Thursday after soaring on Wednesday amid renewed speculation the government would merge more banks. Saudi banking shares were weak.
Union National Bank lost 1.1 percent after jumping 12.3 percent on Wednesday. Abu Dhabi Commercial Bank was flat after it gained 5.8 percent. Abu Dhabi Islamic Bank pulled back 1.9 percent after climbing 4.7 percent.
The banks did not issue a statement after the market close on Wednesday to confirm or deny the speculation. Several bankers familiar with the industry in Abu Dhabi told Reuters formal talks were not underway and the idea of any merger was still preliminary.
Shares in First Gulf Bank and National Bank of Abu Dhabi, which announced earlier this year plans to merge by first quarter of next year, were strong on Thursday morning.
They helped lift the main index 0.1 percent after an hour of trade. FGB was up 0.8 percebt and NBAD was up 0.5 percent.
Dubai’s main index edged up 0.2 percent with activity focusing on smaller shares usually traded by local speculative investors. Islamic Arab Insurance added 3.8 percent and investment firm Shuaa Capital was up 3.1 percent.
In Qatar, the index was up 0.4 percent with Vodafone Qatar adding 2.1 percent. Shares in the telecom company tumbled earlier this week after index compiler MSCI said it planned to downgrade the stock to its small cap index from the Qatar Standard Index, effective at the end of November.
Saudi Arabia’s index edged down 0.1 percent in the first 20 minutes of trade as banks, which had led the market’s rally over the previous month, pulled back on profit-taking. National Commercial Bank was down 0.2 percent and Riyad Bank lost 0.9 percent.