World Markets
FAB

MIDEAST STOCKS-Abu Dhabi underperforms major Gulf indexes

Credit: REUTERS/STRINGER

Major stock markets in the Gulf retreated on Wednesday, ahead of Eid holidays, as sector leaders First Abu Dhabi Bank and Etisalat dragged the Abu Dhabi bourse lower.

July 29 (Reuters) - Major stock markets in the Gulf retreated on Wednesday, ahead of Eid holidays, as sector leaders First Abu Dhabi Bank and Etisalat dragged the Abu Dhabi bourse lower.

The index .ADI dropped 0.9%, weighed down by a 1.8% decline in First Abu Dhabi Bank FAB.AD after it reported a 25% fall in quarterly profit on Tuesday, pressured by another quarter of higher impairment charges.

The United Arab Emirates' biggest lender reported a net profit of 2.41 billion dirhams ($656.18 million) in the second-quarter versus 3.22 billion dirhams a year earlier.

Banks in the region have been hit by the twin shock of the COVID-19 pandemic and lower oil price, with most seeing their profits plunge in the second quarter as they book higher provisions for expected credit losses.

Elsewhere, telecoms firm Etisalat ETISALAT.AD was down 0.8%.

Dubai's main share index .DFMGI fell 0.5%, pressured by a 2.9% decrease in Emirates Integrated Telecommunications DU.DU as the stock traded ex-dividend.

The Qatari index .QSI eased 0.4%, with Commercial Bank COMB.QA shedding 5.2% and Qatar National Bank QNBK.QA losing 0.5%.

The index's losses, however, were limited by gains at telecoms company Ooredoo ORDS.QA, which was up 2%.

Ooredoo posted second-quarter net profit of 431.7 million riyals ($118.60 million), up from 420.7 million riyals year ago.

** Saudi Arabia's stock exchange was closed on Wednesday, while other exchanges are scheduled to be closed from Thursday.

($1 = 3.6728 UAE dirham)

($1 = 3.6400 Qatar riyals)

(Reporting by Ateeq Shariff in Bengaluru; editing by Barbara Lewis)

((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

FAB COMB

Latest World Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More