| DUBAI, July 22
DUBAI, July 22 Dubai's bluechip Emirates NBD
surged on Monday after its quarterly earnings came in
ahead estimates by a significant margin, helping lift the
emirate's bourse to a new multi-year high, while most regional
markets also gained.
Shares in ENBD, Dubai's biggest bank my market value, rose 6
percent to a four-week high. The stock is up 79.3 percent
"ENBD's loan growth has been healthy and net interest
margins also improved," said Chiradeep Ghosh, equity analyst at
Securities and Investment Firm (SICO) in Bahrain.
The lender made a net profit of 972 million dirhams ($265
million) in the second-quarter; a 50 percent year-on-year jump.
Five analysts polled by Reuters had forecast on average a
profit of 783.8 million dirhams.
SICO estimates 2013 profit for the lender at 3.3 billion
dirhams, which may be revised upwards.
Most analysts have a bullish outlook on the lender. Last
year, ENBD reported an annual profit of 2.55 billion dirhams.
Dubai's gains were capped due to slight profit-taking; the
measure climbed 0.2 percent to its highest level since
November 2008 and up 57 percent year-to-date.
Abu Dhabi's benchmark rose for a 12 consecutive
sessions, climbing 0.2 percent to a near five-year high.
Elsewhere, earnings also lifted investor sentiment on Doha's
bourse. Shares in Qatar Navigation (Milaha) rose 3.1
percent to a six-week high after the firm reported a 30 percent
increase in first-half net profit.
Qatar National Bank, the region's largest lender
by market value, climbed 3.2 percent to a new all-time high.
Doha's index gained 1.2 percent, extending 2013 gains
to 15.5 percent.
In Egypt, trading in bluechips strengthened as funds from
Gulf aid boosted investor hopes of short-term stability in the
Egypt received $2 billion in aid from Saudi Arabia,
following $3 billion from UAE, which will help to shore up the
country's foreign reserves and cover immediate subsidised food
and fuel import costs.
"The key issue for Egypt right now aside from the political
scene, is the money that is flowing in," said Fouad Darwish,
head of brokerage at Global Investment House. "The country needs
it for a number of things but more importantly, to ensure the
currency exchange is not further compromised and the economic
deterioration is reigned in."
The Egyptian pound has slightly recovered from a
record low since the military overthrew President Mohamed Mursi.
Currency depreciation concerns kept foreign investors away from
the market, which have resumed buying.
"I'm bullish on the banking, food and energy sectors - the
industry is slowly being rejuvenated and there is more money in
the system," Darwish added.
On the political front, legal experts have started amending
Egypt's constitution this week, which needs to be in place
before parliamentary elections can take place; these were
ordered by the army following its removal of Mohamed Mursi as
These developments have helped to reduce short-term investor
concerns, with many of the belief the market will see a strong
recovery when social and political stability returns.
Cairo's main benchmark index climbed 0.6 percent to
a two-month high.
Commercial International Bank and EFG-Hermes
rose 1.3 and 2 percent respectively. Orascom Telecom
and Media added 3.8 percent.
Elsewhere, Saudi Arabia's bourse gained 0.9 percent
to hit a new 15-month high.
Heavyweight sectors of banks rose with its index up
1.2 percent. Most banks posted estimate-beating quarterly
results in recent days.
* The index gained 0.2 percent to 2,548 points.
* The index climbed 0.2 percent to 3,865 points.
* The index rose 1.2 percent to 9,653 points.
* The index rose 0.6 percent to 5,452 points.
* The index advanced 0.9 percent to 7,806 points.
* The index gained 0.6 percent to 8,036 points.
* The index eased 0.03 percent to 6,632 points.
* The index ended flat at 1,186 points.