x Abu Dhabi, UAEMonday 24 July 2017

Oil prices fuel Taqa interest

Taqa has seen shares rise to a seven month high after it said high oil prices would help ensure funds for a coming US$1.8 billion capital investment programme.

Shares in Abu Dhabi National Energy Company rose to their highest since September 2009 as investors were encouraged by rising oil prices.

The company, also known as Taqa, said last week high oil prices would help ensure funds for a coming US$1.8 billion capital investment programme.

Its shares rose 3.8 per cent to Dh1.63 on the Abu Dhabi Securities Exchange (ADX) yesterday, although volumes were low.

Banking stocks were also in focus as Emirates NBD, Abu Dhabi Islamic Bank (ADIB) and Abu Dhabi Commercial Bank (ADCB) all reported first-quarter results.

Emirates NBD ended 2.4 per cent higher at Dh3.85, the highest since the end of 2009, despite booking impairment charges that more than doubled those of the first quarter last year. Shares in ADCB ended down 0.4 per cent at Dh2.69, while ADIB closed 0.3 per cent lower at Dh3.21. First Gulf Bank also missed analysts' forecasts for the first quarter when it posted a 4.8 per cent decline in net profit, compared with the first quarter of last year, to Dh875 million but analysts remained optimistic.

"The stock is very cheap. Our target price offers 26 per cent upside, the highest within the UAE," said Jaap Meijer, head of banking research at Alembic HC Securities.

The shares ended flat yesterday at Dh17.60.

The Dubai Financial Market General Index ended 0.2 per cent lower at 1,634.75 and the ADX General Index closed flat at 2,689.30.

In Kuwait, Global Investment House surged in response to Sunday's news that a Dubai court had ordered National Bank of Umm Al Qaiwain to pay Global $250m, plus about $54.6m in interest.

Shares in Global, which resumed trading yesterday after a two-day suspension, climbed 6 per cent.

 

fhalime@thenational.ae