Dubai surges in broad rally, rest of region sluggish early on

Dubai’s stock market rose sharply in a broad-based rally early on Tuesday but other Gulf bourses were sluggish, with Saudi Arabian banks mixed after first-quarter earnings announcements.

The Dubai index gained 1.3 per cent to 3,509 points, rebounding from near technical support on its March low of 3,435 points. All 10 most heavily traded stocks rose with GFH Financial, the most active, adding 3.6 per cent.

Abu Dhabi dropped 0.7 per cent, however, because of a 2.3 per cent fall by telecommunications firm Etisalat as it went ex-dividend.

Qatar’s index was flat but Commercial Bank of Qatar lost 1.4 per cent after reporting a 66.7 per cent drop in first-quarter net profit to 91.2 million Qatari riyals.

Analysts polled by Reuters had on average forecast CBQ would make net profit attributable to equity holders, a slightly different profit measure, of 209.4m riyals; the bank cited a sharp rise in provisions for non-performing loans.

Saudi Arabia’s index slipped 0.3 per cent as Alawwal Bank fell 1.4 per cent after reporting a quarterly profit of 324m riyals, down from 511.5m riyals a year earlier. NCB Capital had projected 376m riyals and EFG Hermes, 443m riyals.

But National Commercial Bank, the kingdom’s largest lender, gained 0.5 per cent after reporting a 2.7 per cent rise in first-quarter net profit to 2.70 billion riyals; SICO Bahrain had forecast 2.39bn riyals.

National Metal Manufacturing and Casting Co surged 3.9 per cent after saying it had signed a memorandum of understanding with Saudi National Automobiles Manufacturing to make automobile parts. It did not give details, but developing an auto industry is a goal of the Saudi government’s economic reform programme.

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