ADNOC Distribution shines in Abu Dhabi, Saudi drops

Cars are seen an ADNOC petrol station in Abu Dhabi, United Arab Emirates July 10, 2017. (Reuters)
Updated 07 April 2019

ADNOC Distribution shines in Abu Dhabi, Saudi drops

  • ADNOC Distribution jumps 8 pct
  • Union Properties rises in heavy trade

DUBAI: ADNOC Distribution lifted the Abu Dhabi stock market on Sunday and Dubai continued its winning streak, while Saudi Arabia lagged behind.

The Abu Dhabi index was up 0.4 percent, as ADNOC Distribution rose 8 percent to a one year high of 2.7 dirhams ($0.7351).

Last week, the company’s shareholders approved an increase in the firm’s dividend policy. The company also won shareholder approval to buy back up to 62.5 million shares, equivalent to 5 percent of its free float during a 12-month period, should it choose to do so.

Separately, Reuters reported that the firm was considering a secondary listing overseas. The Dubai index increased 0.2 percent, rising for its seventh straight session. Union Properties was by far the stock with the highest trading volume, gaining 0.8 percent. Emirates NBD Bank — which Dubai-based Arqaam Capital on Sunday called its “top buy” — added 1.3 percent after saying last week that it will buy Denizbank.

Heavyweight Emaar Properties was down 0.4 percent, while Shuaa Capital was up 4.3 percent. The firm is set to merge with Abu Dhabi Financial Group soon in a reverse takeover.

Dana Gas and Eshraq Properties were among the stocks registering the highest trading volumes in Abu Dhabi, and they went up 0.5 percent and 0.7 percent, respectively.

Saudi Arabia’s Tadawul index was down 0.6 percent, ending a previous 9-day gain streak pulled down by Al Rajhi Bank which was down 1.1 percent. “Being a Sunday, foreigners were absent (from the Saudi market) and we suspect local investors are booking some of the recent profits,” said Vrajesh Bhandari, senior portfolio manager at Al Mal Capital in Dubai. Saudi Almarai was down 0.5 percent in thin trading volume, after what Arqaam capital called “uninspiring results” in a report on the company’s first quarter.

Led by Ahli United Bank, which was up 2.5 percent, Bahrain’s stock market added 1.5 percent. On Wednesday, the bank said due diligence for a merger with Kuwait Finance House was in progress.

Egypt’s stock market was down 0.7 percent on Sunday, weighed down mainly by Orascom Investment Holding , which lost 7.1 percent after reporting last week a drop in standalone net profit.

SAUDI ARABIA The index fell 0.6 pct to 9,011 points ABU DHABI The index rose 0.4 pct to 5,052 points DUBAI The index added 0.2 pct to 2,781 points QATAR The index gained was little changed at 10,192 points EGYPT The index was down 0.7 pct at 15,135 points BAHRAIN The index was up 1.5 pct at 1,440 points OMAN The index added 0.8 pct to 3,970 points. KUWAIT The index rose 1.4 pct to 6,222 points. ($1 = 3.6728 UAE dirham)

Paris Air Show: After Boeing showstopper, Airbus seeks order bounce

Updated 57 sec ago

Paris Air Show: After Boeing showstopper, Airbus seeks order bounce

  • British Airways owner IAG signs letter of intent to buy 200 of its 737 MAX jets
  • Airbus is looking for up to 200 orders for the A321XLR, which is designed to open up new routes

PARIS: Airbus, reeling from the potential loss of a major customer for its best-selling A320neo as British Airways owner IAG placed a lifeline order for the grounded 737 MAX, prepared to hit back with more orders for its A321XLR on Wednesday.
The planemaker has been negotiating with US airlines investor Bill Franke whose Indigo Partners has also been known to place orders for multiple airlines within its portfolio and could reel it in for the Paris Air Show, industry sources said.
Airbus declined to comment.
After weathering intense scrutiny over safety and its public image, Boeing won a vote of confidence on Tuesday as IAG signed a letter of intent to buy 200 of its 737 MAX jets that have been grounded since March after two deadly crashes.
The surprise order lifted the energy of a previously subdued Paris Airshow, where the talk had been of the possible end of the aerospace cycle, given the issues at both Boeing and Airbus as well as geopolitical and trade tensions around the world.
Australia’s Qantas Airways said on Tuesday it would order 10 Airbus new A321XLR jets and convert a further 26 from existing orders already on the Airbus books.
Airbus is also in talks with leasing company GECAS and has been trying to secure an eye-catching order for the A321XLR from American Airlines, though the world’s largest carrier does not typically make announcements at air shows.
Airbus is looking for up to 200 orders for the A321XLR, which is designed to open up new routes.