Qatar shares increased for the first time in four days after Commercial Bank of Qatar raised its full-year cash dividend payment. Oman’s gauge dropped the most in more than a month.
Commercial Bank of Qatar, the country’s second-biggest bank by assets, climbed 3.9 percent after it proposed a dividend of QR7 for 2010, compared with 6 riyals the previous year. Salam International Investment, the Doha-based company with assets in construction, soared the most in more than five years as it posted an 8 percent increase in full-year profit. The QE Index rose 0.8 percent to 8,999.79 at the 12:30 p.m. close in Doha. Dubai’s DFM General Index jumped 1.6 percent, the most in more than three weeks, to 1,630.16.
Commercial Bank’s “proposed dividend came as a surprise,” said Hassan El Salah, deputy head of institutional equities at Al Ramz Securities, an Abu Dhabi-based brokerage. The bank’s “valuation still remains attractive compared to its peers in Qatar,” he said.
Commercial Bank trades at 12.5 times reported earnings, compared with a valuation of 13.7 times for larger competitor Qatar National Bank, according to data compiled by Bloomberg.
Commercial Bank reported net income for the three months ended December 31 of QR309m ($85m). The mean estimate of five analysts was for a profit of QR443m, according to data compiled by Bloomberg.
Commercial Bank shares advanced to QR90. They have dropped 3 percent in 2011.
Salam International soared 9.9 percent, the most since October 2005, to QR11.1. Profit rose to QR141.2m.
In Dubai, Drake & Scull International PJSC increased to the highest close since October 2009, surging 4.6 percent to QR1.13. The construction engineering company said it won a QR465m ($127m) contract in Egypt. Emirates Integrated Telecommunications Co, the phone company known as Du, climbed 5.3 percent to QR3.18, the highest level in more than a year.
National Bank of Oman Ltd. was the biggest decliner in the sultanate’s benchmark gauge after the bank posted lower-than- expected full-year profit.
The MSM30 Index lost 0.6 percent, the most since December 13, to 6,965.14 at the 1 pm close in Muscat.
National Bank, the country’s second-largest bank by assets, slipped 2.1 percent to 0.331 rial, the lowest close since Sept. 2. Net income was 27.2 million rials ($71 million), less than the 29.45 million-rial mean estimate of eight analysts compiled by Bloomberg.
Saudi Arabia’s Tadawul All Share Index rose 0.5 percent. The Bloomberg GCC 200 Index of 200 companies in the Arabian Gulf gained 0.6 percent. Bahrain’s measure increased 0.1 and Kuwait’s gauge added 0.3 percent. Abu Dhabi’s ADX General Index declined 0.3 percent.
For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.