Abu Dhabi's stock market index rebounded in early trade on Nov. 21 as some of banking stocks which were sold off in the previous session recovered, while Saudi Arabia rose as oil prices firmed.
Abu Dhabi's index rose 0.9% after falling 1.7% on Nov. 20. Abu Dhabi Commercial Bank (ADCB) climbed 3.2% and Abu Dhabi Islamic Bank rose 0.3%.
On Nov. 20, Union National Bank dropped 5.2% and ADCB lost 2.7% after both lenders issued separate statements denying last week's Bloomberg report that they were involved in merger talks. Similarly, ADIB pulled back 0.8% after the lender said that it has no plans to merge with Alhilal Bank.
Shares in UNB have yet to trade on the morning of Nov. 21.
Dubai's Shuaa Capital jumped 8.2% as investors were optimistic that its new shareholder, Abu Dhabi Financial Group, will unlock value for the investment firm. Shares in Shuaa are now trading roughly double the acquisition price of 0.705 dirham a share.
Shares in other second-tier companies, usually traded by local traders, also climbed, helping carry Dubai's main index 0.3% higher. Builder Drake & Scull rose 2.8%.
Meanwhile, Saudi Arabia's general index edged up 0.2% to 6,585 points after 20 minutes of trade, having closed down for two straight sessions.
"Even if the index rises, it is likely to face strong resistance between 6,700 - 6,875 points," said a note by Riyad Capital.
The majority of listed petrochemical shares rose as Brent futures climbed back over $47 per barrel, with heavyweight producer Saudi Basic Industries adding 0.3%.
Recommended Reading
Petrie Partners: A Small Wonder
2024-02-01 - Petrie Partners may not be the biggest or flashiest investment bank on the block, but after over two decades, its executives have been around the block more than most.
CEO: Coterra ‘Deeply Curious’ on M&A Amid E&P Consolidation Wave
2024-02-26 - Coterra Energy has yet to get in on the large-scale M&A wave sweeping across the Lower 48—but CEO Tom Jorden said Coterra is keeping an eye on acquisition opportunities.
Endeavor Integration Brings Capital Efficiency, Durability to Diamondback
2024-02-22 - The combined Diamondback-Endeavor deal is expected to realize $3 billion in synergies and have 12 years of sub-$40/bbl breakeven inventory.
Exxon, Chevron Tapping Permian for Output Growth in ‘24
2024-02-02 - Exxon Mobil and Chevron plan to tap West Texas and New Mexico for oil and gas production growth in 2024, the U.S. majors reported in their latest earnings.
Patterson-UTI Braces for Activity ‘Pause’ After E&P Consolidations
2024-02-19 - Patterson-UTI saw net income rebound from 2022 and CEO Andy Hendricks says the company is well positioned following a wave of E&P consolidations that may slow activity.