Shares extend gains as firms report Q1 earnings

DUBAI — The UAE markets gained for a third day as companies reported first-quarter earnings, with Commercial Bank of Dubai (CBD) rising to the highest in a month on profit growth and Abu Dhabi National Energy Co (Taqa) advancing after shareholders approved the sale of bonds.

By A Staff Reporter

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Published: Fri 18 Apr 2008, 11:13 AM

Last updated: Sun 5 Apr 2015, 11:40 AM

The Dubai Financial Market (DFM) General Index yesterday jumped 1.3 per cent to close at 5,584.66 and the Abu Dhabi Securities Market (ADSM) Index added 0.7 per cent at 4,910.78 points. Shares value in Dubai reached Dh1.9 billion while that in Abu Dhabi amounted to Dh1.1 billion.

“Decent results are coming out which is improving sentiment,” said Amro Diab, head of Gulf institutional sales at EFG-Hermes Holding SAE, in a Bloomberg report. “There were no surprises so far and even when earnings fell, they were in line with expectations.”

CBD, the seventh-biggest bank in the UAE by market value, surged five per cent to Dh9.97 on DFM. This was the bank’s highest close since March 17, as it said that increased lending brought a 22-per cent rise in first-quarter profit to Dh267 million.

Gulf General Investments grew 1.3 per cent to Dh7.95 as the company announced first-quarter net income of Dh155 million, up 48 per cent from a year ago.

Dubai’s second-largest property developer, Deyaar Development, slumped for a second day at 0.9 per cent to Dh2.33. Zack Shahin, the company’s CEO, has resigned as he is being investigated by the UAE public prosecution for “financial wrongdoing”.

The country’s energy investor, Taqa, increased 2.8 per cent to Dh3.33 on ADSM. The company said its shareholders have approved the sale of Dh4.15 billion worth of convertible bonds.

Emirates Telecommunications Corp, also known as Etisalat, reported a rise in profit but its shares dropped 0.5 per cent to Dh21.80. Net income jumped to Dh2.12 billion, or Dh0.35 a share, for the first-quarter from Dh1.84 million, or Dh0.31 per share, a year earlier.

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