UAE Stocks: Key factors to watch

Stocks in the United Arab Emirates edged up higher on Thursday, as oil prices climbed above $32 overnight. The Dubai Financial Market (DFM) was up 0.44 percent and Abu Dhabi Securities Exchange (ADX) by 0.57 percent to 3,849 within the first hour of trade.

Markets closed in the green on Wednesday with Dubai up by more than 2 percent, and Abu Dhabi 0.73 percent.

Argaam has compiled a list of local and global developments that are likely to impact UAE markets.

— Brent crude rose overnight and was at closer to $33 a barrel minutes before markets opened on Thursday. WTI Crude was at $32.03 per barrel.

—US Federal Reserve kept interest rates unchanged at the conclusion of its two-day meeting ending Wednesday.

— Markets in the US closed lower on Wednesday, as statements from the US Fed sparked concerns about global economic growth. The Dow Jones slipped 1.38 percent and Nasdaq was down 2.18 percent at close.

—Asian markets opened low on Thursday. China’s Shanghai Composite index was down 1.48 percent towards end of trade, while Japan’s Nikkei was down 0.39 percent to 17,097 points.

—UAE banks continue to announce their financial reports, with many posting declines in net profit.

Dubai Financial Market

—Dubai Islamic Bank’s net profit surged 63 percent in Q4-2015 to AED 1.15 billion. Net profit for fiscal year 2015 jumped 37 percent year-on-year to AED 3.84 percent. DIB’s board recommended a cash dividend of AED 0.45 per share.

—Mashreq Bank’s Q4 net profit fell 13.7 percent to AED 556.2 million. Trading for the company will also resume today after it disclosed results of its board meeting.

Abu Dhabi Securities Exchange

—Sharjah Islamic Bank reported a net profit of AED 409.9 million during fiscal year 2015, marking an 8.7 percent rise. A cash dividend of AED 0.10 per share was proposed.

—National Bank of Abu Dhabi’s Q4 net profit fell 24.5 percent to AED 1.04 billion, while falling six percent for fiscal year 2015 to AED 5.23 billion. An AED 0.40 per share cash dividend was proposed.

—National Bank of Fujairah reported a 10.5 percent increase in net profit to AED 558.8 million for fiscal year 2015, marking their best result to date.