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DUBAI / Reuters
Most stock markets closed down on Monday with volumes low as geopolitical risk kept institutional funds away, but Abu Dhabi’s energy company TAQA kept rising after the government increased its stake in the company last week.
Abu Dhabi’s index fell 0.4 percent, with shares of the recently merged lender First Abu Dhabi Bank down 0.9 percent, its third consecutive session of declines. Shares of what is now the largest bank by assets in the emirate outperformed last week as emerging market funds adjusted weightings in their portfolios to reflect the merger. Abu Dhabi National Energy (TAQA), however, rose 1.7 percent to a five-month high and ahead of most other shares in the region. Shares in the energy company have been attracting interest since last week, when Abu Dhabi’s state utility boosted its stake in the loss-making company to 74 percent, days after it granted land that could wipe out the energy company’s losses.
In the neighbouring emirate, Dubai’s index declined 0.5 percent in the lowest daily volume in a week. The builder of the tallest tower in the world, Emaar Properties, fell 0.5 percent and Dubai Islamic Bank lost 1.2 percent. “Uncertainty about what’s next between the US and Syria, and also more IS attacks in Egypt, will keep many fund managers away from stocks for now,†a Dubai-based fund manager said. Saudi Arabia’s index closed flat as 74 shares advanced and 68 of them declined. Domestic-focused shares were some of the best performers, with electronics retailer United Electronics jumping 6.5 percent. Shares of the company have been volatile since it swung to a net profit in the first quarter from a net loss last year.