Dubai’s heavyweight Emirates NBD (ENBD) is likely to gain on Monday after the lender reported a 50 percent surge in second-quarter net profit, beating analysts’ forecasts by a large margin.
Net profit was 972 million dirhams ($265m); five analysts polled by Reuters had forecast on average a profit of $213.3m.
Shares in ENBD have surged 69.1 percent year-to-date, outperforming the wider benchmark’s gain of 56.6 percent, so upside for the stock will be limited. Part of the profit leap was due to the disposal of ENBD’s stake in Union Properties ; loan impairments actually rose marginally from a year earlier.
However, the overall outlook for the Dubai market remains positive. Dubai Financial Market posted a six-fold rise in second-quarter net profit, slightly beating analyst forecasts; its shares may also gain.
Dubai’s index hit a near five-year high on Sunday on earnings optimism, with the index breaking above important technical resistance at the June peak of 2,501 points.