Markets flat on steady oil, banks weigh on Abu Dhabi

Dubai : Stock markets in the Middle East were largely flat yesterday on the back of steady oil prices, but exchanges in Dubai and Abu Dhabi shed some value, dragged down by some companies missing investors’ expectations.

Oil prices steadied, supported at near multi-month highs by tighter crude markets, but slightly pressured by an unexpected increase in U.S. production, exports and crude inventories.

Brent crude was changing hands at $58.34 a barrel at 1221 GMT, backed by comments from Saudi Arabia’s energy minister earlier this week which confirmed that the country - the world’s top crude exporter - is determined to end a global supply glut that has impacted oil prices over the past three years.

Saudi Arabia’s Crown Prince Mohammed bin Salman reiterated Saudi Arabia’s commitment to stabilise oil demand and supply in an interview with Reuters.

The Saudi index was flat, marked by the continued sell off of Zain Saudi, which lost 3.8 per cent on Thursday. The company announced a 38pc capital reduction on Wednesday, alongside a 6 billion riyals ($1.60 billion) rights issue.

This led to a huge sell off on Wednesday, with the shares losing nearly 10pc. 

First Abu Dhabi Bank, the largest bank in the United Arab Emirates, lost 1.9pc after having reported an 18pc drop in third-quarter profit on Wednesday. The bank, which was created last year by the merger of National Bank of Abu Dhabi and First Gulf Bank, posted a net profit of 2.61 billion dirhams ($710.61 million), below EFG Hermes’ 2.85 billion dirhams forecast.

FAB’s performance dragged down the Abu Dhabi index, which lost 0.7pc on Thursday. On the same exchange, Etisalat posted a 0.3pc gain after reporting a 29pc increase in third-quarter net profit on Wednesday.

The Dubai index slipped 0.4pc with Emaar Properties and Emaar Malls shedding 0.9pc and 1.3pc respectively after Emaar Properties said an initial public offering in its development unit would be a similar size to the offering of Emaar Malls when it was listed on Dubai Financial Market in 2014.