Abu Dhabi stocks rise on upbeat bank results

Abu Dhabi shares advanced for a sixth day, as earnings from banks boosted investor confidence, oil traded above $77 a barrel and emerging markets rose.

Abu Dhabi Commercial Bank PJSC was up for a fifth day, poised for its longest winning streak since September 13. The chief executive officer of the UAE’s third-biggest bank told Emirates Business 24/7 that ADCB will this year avoid investments abroad. National Bank of Abu Dhabi PJSC gained the most in more than a month. Abu Dhabi’s ADX General Index added 0.9 per cent to 2,714.09 at 12:59pm in the emirate. The measure has increased 4.4 per cent in the past six days, its longest winning streak since September 10. The DFM General Index advanced 0.3 per cent.

“Abu Dhabi banks provisioned for some bad debts and there is a feeling that the worst is behind us,” said Yazan Abdeen, a fund manager at ING Investment Management (Dubai) Ltd. “However, I think the bad debt through direct and indirect exposure in real-estate are still hidden.”

ADCB said on January 26 its fourth-quarter loss widened after provisions for bad loans more than doubled and NBAD said this week it made provisions of Dh623 million ($170m) for bad loans. UAE bank earnings are suffering after the financial crisis slowed lending, hurt investment banking income and led to a rise in bad loans.

Emerging-market stocks rose, heading for the biggest gain in two months, as higher commodity prices boosted energy producers. The MSCI Emerging Markets Index increased 1.6 per cent. Crude oil advanced for a third day on expectations of a recovery in the global economy. Crude last gained 0.7 per cent to $77.77 a barrel.

ADCB added 2.9 per cent to Dh1.76, bringing the five- day surge to 28 per cent. The bank will focus on consumer banking and lending to small and medium-sized companies, government organizations and infrastructure projects, Emirates Business 24/7 cited Ala’a Eraiqat as saying.

NBAD rose 4.8 per cent, the biggest jump since December, to Dh12.1.

Saudi Arabia’s Tadawul All Share Index advanced 0.4 per cent, Qatar’s benchmark index climbed 1.2 per cent and Bahrain’s gauge gained 0.5 per cent. Oman’s MSM30 Index increased 0.3 per cent and Kuwait’s measure was little changed.