UAE and Gulf investors upbeat in early Monday trade
Trend seems to be of banks announcing better than expected 2020 results
UAE and other Gulf seem to have regained some bullishness, with stocks advancing in early trade on Monday, closely tracking advances set by Asian peers and oil prices. At least, early on Monday, there is a sense of renewed optimism about the global growth.
The UAE markets have won back most of the losses they suffered Sunday as they traded under pressure from heavy sell-offs hitting in world stock markets over the weekend. Abu Dhabi Securities Exchange climbed 0.8 per cent, bolstered mainly by its banking stocks. First Abu Dhabi Bank advanced 1.1 per cent, recouping losses.
Ahead of expectations
Abu Dhabi Commercial Bank also ticked higher - by 0.8 per cent - after reporting forecast-beating full-year results and recommending Dh0.27 per share dividend. The lender posted a 27 per cent decline in 2020 profit as net impairment charges spiked in a macro-economic environment challenged by the health crisis and as it booked provisions on NMC Health Group and Finablr.
But the drop in profit was well below what most analysts had anticipated.
Abu Dhabi Islamic Bank also rose 1 per cent, riding on the positivity created by a host of robust sector earnings.
Property stocks impress
Dubai Financial Market bounced back 1 per cent after easing 1.6 per cent on Sunday. Real estate and banking stocks acted as the biggest boost with Emaar Properties adding 1.9 per cent and Deyaar Development 1.7 per cent.
Dubai property prices are displaying signs of bottoming out, heading for a slower drop this year than expected.
Emirates NBD and Dubai Islamci Bank climbed 1.3 and 1 per cent, respectively. Investors have recently been upbeat about UAE banks after three major lenders posted full-year results that topped most market expectations.