Emirates NBD, Dubai's largest bank by market value, slumped on Monday after posting a 59 percent drop in quarterly net profit, while Kuwait's small-caps lifted the bourse to a new month high. Shares in ENBD fell 4.6 percent after its net profit widely missed estimates, weighed down by government-linked debt exposure.
"We don't think this is a game changer, although impairments are looking to be higher in 2011-13 than expected," Rasmala Investment Bank said in a note. Dubai's benchmark fell 0.3 percent, just three points above Tuesday's seven-month low. Meanwhile, neighbouring Abu Dhabi's index rose 0.2 percent, up from Sunday's 30-month low. Banks supported with Bank of Sharjah gaining 2.9 percent, Abu Dhabi Islamic Bank rising 1.3 percent and Sharjah Islamic Bank up 3.4 percent. "Local sentiment is not that strong and interest to start building positions is not there due to high volatility in international markets, which is affecting us negatively," said Marwan Shurrab, vice-president and chief trader at Gulfmena Investments. "Q3 numbers are also not helping."
Kuwait's index rose 0.2 percent to its highest close since September 22. Al Mal Investment Company jumped 8.8 percent, Coast Investment and Development surged 8.3 percent and National Investment Company rose 5.1 percent. Kuwait Pipes Industries advanced 6.7 percent. Kharafi Group owns shares in all the above companies.
In Qatar, upbeat earnings helped the index climbed 0.3 percent, trimming 2011 losses to 2.6 percent to be the best performing Gulf index. "Qatar is grabbing interest from local and international institutional buyers, supporting the growth story which is unfolding on a daily basis," said Shurrab.
United Development jumped 7.1 percent, extending gains to reach its highest close since May 15. On Sunday, it reported a 75.4 percent increase in nine-month net profit to 1.8 billion riyals. Elsewhere, Oman and Saudi Arabia's markets closed little changed.