Dubai’s stock market rebounded moderately in early trade Monday after the emirate’s largest bank reported better-than- expected earnings, while other Gulf bourses also rose from multi-year lows.
The Dubai index was up 0.8 percent after 50 minutes of trade, recouping some of the 15 percent which it had lost since the end of last year.
However, the index was well off its early high – it jumped more than 2 percent in the opening minutes – showing continued pressure from investors wanting to exit the market because of concern about sliding oil prices and the global economy.
Emirates NBD surged 4.5 percent in unusually heavy trade after it posted a 74 percent rise in fourth-quarter net profit. It reported a profit of 2.13 billion dirhams ($579.9 million); analysts at Beltone Financial and HSBC had forecast 1.31 billion dirhams and 1.71 billion dirhams. It also recommended a higher annual dividend.
There was some bargain-buying in property-linked sectors. Builder Arabtec and Emaar Properties rose 4.8 percent and 1.1 percent respectively.
Abu Dhabi’s bourse climbed 1.5 percent; top gainers were the the two largest lenders by market value, First Gulf Bank and Abu Dhabi Commercial Bank, each jumping more than 2.5 percent.
Abu Dhabi’s banks have yet to report quarterly results, and some investors bet ENBD’s earnings showed potential for more positive surprises among other lenders.
In Qatar the index, which had plunged 7.2 percent on Sunday, advanced 1.3 percent in the first 15 minutes of trade. Telecommunications firms Ooredoo and Vodafone Qatar each rose more than 3.0 percent.