Bank shares in the UAE take a hit on bourses


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Bank shares declined in Abu Dhabi and Dubai yesterday on concerns that higher provisioning would drag fourth-quarter earnings down.

First Gulf Bank fell 2.1 per cent to Dh18.10.

The bank announced on Sunday that its board had recommended the distribution of 75 million bonus shares after the expiration of its buyback programme. Abu Dhabi Commercial Bank lost 0.4 per cent to close at Dh2.26.

Last month, the Central Bank ordered local lenders to increase to 80 per cent by the end of the year the provisioning for their exposure to the Saudi concerns Saad Group and Ahmad Hamad Al Gosaibi and Brothers. It is not known how much the banks had already provisioned.

"The issues are still not over. Nothing is clear yet," said Ameed Kanaan, the general manager at Al Jazeera Financial Services in Dubai. "Investors are still worried about the economy in general. We are all thinking about debts, defaults and restructuring."

Property stocks also fell, led by RAK Properties, which dropped 4.2 per cent to 45 fils.

The Abu Dhabi Securities Exchange General Index closed flat at 2,754.73.

In Dubai, Emaar Properties declined 0.5 per cent to Dh3.51. Emirates NBD fell 2 per cent to Dh2.94.

The Dubai Financial Market General Index declined 0.4 per cent to 1,658.69.

Elsewhere in the region, Kuwait's measure declined by 0.2 per cent to 6,946.90, Bahrain's was unchanged at 1,428.70, Oman's slipped 0.4 per cent to 6,916.95, and Qatar's lost 0.2 per cent to close at 8,993.63. The Saudi Tadawul All-Share Index fell 0.8 per cent to 6,668.13.