DUBAI, July 19 (Reuters) - Banking stocks boosted Qatar's equities market on Wednesday, with some share prices approaching levels last reached before the country's diplomatic crisis erupted in early June, while other bourses in the region were mostly quiet.
The Qatar index
.QSI
advanced by 1.2 percent to 9,502 points, its highest finish since Saudi Arabia and other Arab states cut diplomatic and transport links with Doha on June 5. Wednesday's gain left the index only 4.3 percent below its pre-crisis close. It has been as much as 13 percent lower early this month.
Qatar National Bank
QNBK.QA
(QNB), the largest lender, jumped by 4.4 percent to 143 riyals. It closed at 145.30 riyals on June 4.
Second-quarter earnings announced by QNB and other Qatari banks in recent days have suggested that the economic impact of the sanctions on Qatari lenders so far has been minor in terms of the drain on their deposits and damage to bottom lines.
Qatar Islamic Bank
QISB.QA
, which analysts say is one of the most exposed to withdrawals because of the diplomatic crisis, rose 1.4 percent.
Late on Tuesday it reported a 10 percent rise in first-half net profit and a 2 percent increase in deposits in the six months to June 30.
Qatar International Islamic Bank
QIIB.QA
added 1.4 percent. Commercial Bank of Qatar
COMB.QA
, however, edged down 0.3 percent after reporting a 58.4 percent slump in second-quarter net profit to 88.4 million riyals ($24.3 million). The average analysts' forceast was 118.3 million riyals.
The profit decline, attributed to provisions for bad debt, was part of a dismal earnings run that began long before the diplomatic crisis. Chief executive Joseph Abraham said in April that provisions would remain high for a few quarters.
ID:nL5N1KA128
Among other Qatari stocks, the most heavily traded, Vodafone Qatar
VFQS.QA
, climbed 2.8 percent after saying that service on its 2G and 3G networks had been restored after disruption because of a technical problem this week.
The Dubai index
.DFMGI
rose in early trade but closed only 0.1 percent higher.
Blue-chip Emaar Properties
EMAR.DU
gained 1 percent while rival DAMAC
DAMAC.DU
, which plunged by 9 percent on Tuesday because of profit-taking, fell by a further 1.7 percent.
Emirates NBD
ENBD.DU
, Dubai's largest lender, gained 0.9 percent after posting a 6 percent rise in second-quarter net profit to 2.02 billion dirhams ($550 million), at the high end of analysts' forecasts. Trade in the tightly held stock was very thin.
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A 0.8 percent rise for telecoms company Etisalat
ETEL.AD
boosted the Abu Dhabi index
.ADI
by 0.5 percent.
The Saudi index
.TASI
was down 0.4 percent. Al Rajhi Bank
1120.SE
, which went ex-dividend on Wednesday, slipped 1.5 percent and blue-chip petrochemicals company Saudi Basic Industries
2010.SE
lost 1.2 percent.
Alinma Bank
1150.SE
, however, rose by 2.9 percent after reporting second-quarter net profit of 488 million riyals ($130 million), against 409 million riyals a year earlier. The average analysts' forecast was 417 million riyals.
Egypt's index
.EGX30
slipped by 0.1 percent but Pioneers Holding
PIOH.CA
gained 2.5 percent in unusually heavy trade after saying it would list its Rooya Real Estate subsidiary on the stock market in the second half of its financial year.
HIGHLIGHTS
SAUDI ARABIA
* The index
.TASI
fell 0.4 percent to 7,230 points.
DUBAI
* The index
.DFMGI
edged up 0.1 percent to 3,582 points.
ABU DHABI
* The index
.ADI
climbed 0.5 percent to 4,594 points.
QATAR
* The index
.QSI
gained 1.2 percent to 9,502 points.
EGYPT
* The index
.EGX30
edged down 0.1 percent to 13,707 points.
KUWAIT
* The index
.KWSE
fell 0.3 percent to 6,794 points.
BAHRAIN
* The index
.BAX
rose 0.3 percent to 1,319 points.
OMAN
* The index
.MSI
dropped 0.4 percent to 5,043 points.
(Reporting by Andrew Torchia; Editing by David Goodman) ((andrew.torchia@thomsonreuters.com; +9715 6681 7277; Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))
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