Abu Dhabi and Dubai stocks traded up in early Monday trades, led all the way by their blue-chips in a rally triggered by robust corporate earnings. Qatar Exchange followed the UAE's lead with Qatar Commercial Bank leading advances there after reporting its first-quarter results.
Abu Dhabi Securities Exchange put on 0.1 per cent to 6,123 points, with First Abu Dhabi Bank, Abu Dhabi Islamic Bank and Waha Capital all part of the advances. But the clear leader was the 1.6 per cent jump in Abu Dhabi Commercial Bank's price, after posting a more than five-fold surge in the first-quarter profit.
The lender's bottom-line shot up to Dh1.12 billion, marking a whopping 436 per cent spike from Dh209 million reported last year for the corresponding period. The bank owes the upbeat figures to net impairment charges dropping 63 per cent, when it recorded significant charges against the debt exposure to troubled NMC Health, Finablr and associate companies. The operating expenses also dipped 20 per cent, making up for a 24 per cent drop in net interest income for the quarter.
Etisalat underperformed after announcing the plan to report its first-quarter results later this week. The telco had enthused investors with its 2020 numbers and special dividend sparking a long rally in the stock, that has seen it surge around 27 per cent for the year. But the 2020 figures appear to have been priced in and the investors would like to see first-quarter performance for the next cue.
Dubai Financial Market moved fractionally higher mainly on the back of real estate stocks that have had a strong run lately after robust first-quarter numbers from blue-chips. The advances were largely undone by Emirates Refreshments plummeting 10 per cent and weakness in a couple of insurer stocks. Telecom firm du also stepped back ahead of quarterly results likely to be out later in the day.
Qatar Exchange eked out some gains with Qatar Commercial Bank advancing 3.2 per cent as markets appeared delighted with the nearly 50 per cent jump in first-quarter profits. Qatar Navigation added to the gains after higher quarterly net income followed by the board giving the go-ahead for full froeign ownership.
Holding back the index were Qatar National Bank, Qatar Islamic Bank and Qatar First Bank with the sector investments looking to be flowing into Qatar Commercial Bank.