UAE stocks surge on strong corporate earnings

Stock markets in the UAE ended higher on Wednesday with the Abu Dhabi index reaching a record high driven by strong corporate earnings.

The ADX General closed 0.8 per cent up at 10,198 points while Dubai’s DFM General Index advanced to 3,385.80.

Most other GCC stock markets also recorded positive performances thanks to strong performances from listed companies that helped build investors’ confidence.

Vijay Valecha, chief investment officer of Century Financial, said the ADX General rose for the fourth day, driven by International Holding Co, which jumped by 3.3 per cent. National Marine Dredging Company had the largest increase, rising 8.8 per cent.

In Dubai, Emaar Properties contributed the most to the index gain, increasing 1.1 per cent. Union Properties had the largest increase, rising 2.9 per cent.

Farah Mourad, a senior market analyst of XTB Mena, said the Dubai stock market was volatile after two days of strong increases.

“The market is finding support in the strong local fundamentals and company earnings which have helped push the main index up last month. In this regard, it could extend gains after new solid earnings publication.”

The Abu Dhabi stock market extended its gains thanks to the increasing optimistic atmosphere fueled by strong company earnings. IHC on Monday reported a 137 per cent year-on-year increase in net profit for the first half of the year at Dh10.35 billion.

Abu Dhabi National Energy Company advanced 2.4 per cent, after reporting a sharp rise in first-half net profit.

Other stock markets in the GCC also recorded positive performances mostly thanks to strong performances from listed companies that helped build investors’ confidence, said Mourad.

Saudi Arabia's benchmark index gained 0.8 per cent, led by a 1.4 per cent rise in Saudi British Bank. Abdullah Al Othaim Market jumped four per cent after the retail chain approved to sell its land in Al Madinah Al Munawarah for SR211.3 million.

The Qatari benchmark rose 0.4 per cent, with the Gulf's biggest lender Qatar National Bank climbing 1.9 per cent while Salam International Investment dropped 4.4 per cent following a decline in first-half profit.

Elsewhere in the Middle East, Egypt's blue-chip index concluded flat. Egypt's annual urban consumer inflation accelerated to a higher-than-expected 13.6 per cent year-on-year in July from 13.2 per cent in June, data from the country's statistics agency Capmas showed on Wednesday.

— issacjohn@khaleejtimes.com