UAE Stocks: Key factors to watch

Stocks in the United Arab Emirates have started the week mixed, with the Dubai Financial Market (DFM) rising 0.12 percent within 30 minutes of market opening, and Abu Dhabi Securities Exchange (ADX) down 0.65 percent.

Dubai ended the previous week higher by 2.8 percent to 3,058 points and ADX jumped 2.13 percent to 4,141 points.

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

Brent crude slipped below the $35-level to reach $34.06 a barrel on Friday. West Texas Intermediate (WTI) also shed 2.62 percent to settle at $30.89 per barrel.

Asian stocks closed the week with declines, as China headed into Lunar New Year celebrations. The Shanghai Composite index was down 0.63 percent on Friday and Japan’s Nikkei slipped 1.32 percent to 16,819 points.

Adeptio LLC., led by Dubai-based businessman Mohammed Alabbar, has signed an initial agreement to buy Al Khair National for Stocks and Real Estate Co.’s 69 percent stake in Kuwait Food Co. (Americana). Alabbar is founder and chairman of Emaar Properties.

Last week, London-based Barclays said it plans to dismiss nearly 150 staff in Dubai, the latest in a series of cost cutting measures by at least four local and international banks in the United Arab Emirates. The news comes after HSBC, Europe’s largest lender, announced it would freeze hiring and salaries across the board.

Abu Dhabi Securities Exchange

Sharjah Islamic Bank (SIB) reported a net profit of AED 409.9 million for fiscal year 2015, a nine percent rise compared to 2014. Total assets jumped 15 percent to AED 29.9 billion in 2015.

Invest Bank reported a net profit of AED 252 million for fiscal year 2015, down from AED 360 million during 2014. Total assets reached AED 14.9 billion compared to AED 13.8 billion during the previous year.

Dubai Financial Market

Dubai Financial Market’s net profit for fiscal year 2015 plunged 66 percent year-on-year to AED 261 million due to a drop in trading activity triggered by lower oil prices.

Mashreq bank’s board of directors has recommended a 40 percent cash dividend distribution. The proposal will be considered at the bank’s general assembly meeting on February 28.

Trading on Air Arabia shares will be suspended Sunday starting from 11:00 am pending its board of directors meeting and disclosure of its financial results.

Write to Matthew Watson at matthew.w@argaamplus.com and

Nadeshda Zareen at nadeshda.zareen@argaamplus.com