Abu Dhabi Stocks Rise on U.A.E. Growth Forecast, Oman Declines
Abu Dhabi’s shares rose for a fifth day after the United Arab Emirates
central bank said growth in non-oil industries may accelerate to 4 percent
this year, boosting the outlook for company earnings.
Abu Dhabi Islamic Bank PJSC (ADIB), the U.A.E.’s second-biggest Shariah-compliant
bank, advanced for a fourth day. First Gulf Bank PJSC (FGB), the lender
controlled by Abu Dhabi’s ruling family, climbed to the highest since Aug.
27. Abu Dhabi’s ADX General Index (ADSMI) rose 0.2 percent to 2,596.73, the
highest since Aug. 26, at the close in the emirate. The measure gained 1.7
percent during the five-day rally. Dubai’s DFM General Index (DFMGI) and
Qatar’s gauge were little changed, while Oman’s index fell 0.7 percent.
The central bank gave its forecast in a report on its website yesterday. The
country, looking to reduce its reliance on oil exports, wants to boost
non-oil exports to 11 percent of GDP by 2030 from 1 percent now, the
National reported this week, citing the director of foreign trade and
exports at the Abu Dhabi Department of Economic Development. The IMF
forecasts non- oil industry growth of 3.5 percent, up from 2.7 percent in
2011.
“The central bank projections are higher than International Monetary Fund
estimates, and there is positive sentiment toward corporate earnings in the
third quarter,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer
Securities. “The push to implement Basel III next year” also helped push
stocks up, Farhat said.
The central bank said it would seek to protect the banking system from
future shocks by installing a discount window to improve “liquidity
management” within the U.A.E. and support the development of collateralized
debt markets.
Abu Dhabi Islamic climbed 0.9 percent to 3.28 dirhams, the highest since
Aug. 26. First Gulf Bank increased 0.2 percent to 9.84 dirhams.
The Bloomberg GCC 200 Index (BGCC200) increased 0.1 percent at 1:09 p.m. in
Riyadh and Saudi Arabia’s Tadawul All Share Index (SASEIDX) gained 0.2
percent. Kuwait’s measure and Bahrain’s gauge fell 0.4 percent.
