Gulf stocks firm in early trade but NBAD cools

Stock markets in the Gulf were firm early Tuesday, boosted by opinion polls and bookmakers’ odds suggesting the “Remain” camp might win Britain’s referendum on European Union membership this week, and as oil held over $50 a barrel.

In Abu Dhabi, National Bank of Abu Dhabi pulled back 1.7 percent after surging 20 percent in the previous two days on news of its merger talks with First Gulf Bank.

But FGB edged up 0.4 percent, and Union National Bank added 2.1 percent after Arqaam Capital said in a note that after the proposed merger between NBAD and FGB, “we expect UNB to be next”.

It said Abu Dhabi Commercial Bank might offer substantial premium to UNB shareholders in a merger; ADCB shares did not change hands in early trade.

Dubai’s index was up 0.3 percent, buoyed by mid- and large cap stocks. Dubai Parks and Resorts climbed 1.4 percent.

Saudi Arabia’s index edged up 0.2 percent after half an hour of trade with the main support from petrochemical shares. Saudi Basic Industries was up 0.3 percent.

Real estate developer Knowledge Economic City gained 0.7 percent after it sold a plot of land for 22.8 million riyals ($6.1 million) in Medina to International Medical Center, an affiliate of Fitaihi Holding Group, which plans a project on the site. Shares in Fitaihi were up 0.6 percent.

Source: Reuters