DFM falls on earnings fears, but ADX rises

DUBAI — Dubai’s benchmark stock index declined on speculation debt restructuring in the emirate will hurt second quarter earnings at real estate companies and banks.

  • Follow us on
  • google-news
  • whatsapp
  • telegram

Published: Wed 21 Jul 2010, 10:57 PM

Last updated: Mon 6 Apr 2015, 4:54 PM

The DFM General Index retreated 0.6 per cent, the biggest drop in two days, to 1,509.78 points at the close. Emaar Properties PJSC, the builder of the world’s tallest tower, declined the most in almost two weeks. Emirates NBD PJSC, the United Arab Emirates’ biggest lender by assets, dropped 1.2 per cent. The Bloomberg GCC 200 Index was little changed. Abu Dhabi’s gauge advanced 0.4 per cent.

Investors “are staying away from the market until they get clarity on both the Dubai World issue and companies performance in the second-quarter”, said Saud Masud, a Dubai-based analyst at UBS AG.

Companies from Gulf Arab nations started releasing earnings this month, while Dubai corporates are expected to report earnings starting next week.

Earnings at Emirates NBD will likely decline 45 per cent to Dh468 million ($127 million), according to the median estimate of three analysts surveyed by Bloomberg News. Profit at Islamic lender Dubai Islamic Bank PJSC will drop 63 per cent to Dh166 million, the survey showed.

Emaar dropped as much as 1.2 per cent, the most since July 7, to Dh3.26, and traded at Dh3.27. Emirates NBD dropped to Dh2.5.

Aabar Gains

Abu Dhabi’s gauge rose for a third day, led by Aabar Investments PJSC. The Abu Dhabi government-controlled company said the offer period for shares owned by minority stakeholders started from Tuesday.

The shares rose 9.9 per cent, the maximum fluctuation allowed in a single trading session, to Dh1.89. The stock has gained 30 per cent since July 18 when Aabar and its parent agreed to offer minority shareholders Dh1.95 a share. — Bloomberg

More news from