Abu Dhabi shares surge on FAB’s strong earnings

Abu Dhabi stocks leapt 4 per cent on Thursday, their biggest intra-day gain in nearly four months, led higher by the United Arab Emirates’ largest lender First Abu Dhabi Bank (FAB) which surged 6.5 per cent on strong second-quarter earnings.

Similarly shares in Dubai bank Emirates NBD rose 3.5 per cent thanks to positive quarterly results, leading gains on the Dubai index which was up 1.7 per cent.

On Wednesday FAB reported a 5 per cent increase in net profit in the second quarter from a year earlier, while Emirates NBD said an 80 per cent surge in second-quarter net profit to Dhs4.74bn was partly driven by an asset sale and foreign exchange gains.

The results reinforced signs that top banks in the UAE are managing to withstand strains from a sluggish economy and a property downturn in Dubai.

Saudi Arabia’s main index slid 0.1 per cent after rising for eight straight sessions EFG Hermes forecast profit for the kingdom’s financial sector would grow 7.6 per cent in the second quarter.

Banque Saudi Fransi lost 1.2 per cent and Saudi Telecom was down 0.5 per cent.