Dh2.88 billion cash dividends proposed by consumer services companies for 2020

The consumer services companies listed in the UAE capital markets have proposed up to Dh2.8 billion in cash dividends for 2020, latest data shows.

According to data released by consumer services companies on the websites of ADX and DFM, these account for 8.2 per cent of the total dividend distributions announced until March 31 by all listed firms in the UAE financial markets, which amounted to around Dh35 billion.

Adnoc tops consumer services companies in terms of the recommended cash dividends, which reached Dh2.57 billion for the reference year, accounting for 89.2 per cent of the total profits announced by the sector.

Agthia comes second with Dh119 million worth of proposed dividends, followed by the Emirates Driving Company, Dh90 million. The rest is divided between other listed consumer services firms.

"The consumer services sector is one of the few platforms which maintained decent growth rates despite a slower and only marginal improvement in business conditions around the world due to the Covid-19 pandemic," according to a market analyst.

GCC markets up

Meanwhile, Saudi Arabia’s stock market rose sharply on Wednesday, after the country announced a huge investment push led by Aramco and Sabic, while other major Gulf markets were mixed.

The kingdom’s Crown Prince Mohammed bin Salman said oil firm Aramco and petrochemical firm Sabic would lead SR5 trillion ($1.3 trillion) of investments by the local private sector by 2030 under a programme announced on Tuesday for economic diversification.

This is part of SR12 trillion worth of investments planned by 2030, Saudi Crown Prince said in televised remarks.

Saudi Arabia’s benchmark index advanced 2.8 per cent, its biggest intra-day gain since April last year, as all its banking shares traded higher except for one.

Al Rajhi Bank leapt 5.1 per cent, while Saudi Basic Industries Corp (Sabic) climbed 5.6 per cent. Saudi Aramco closed 2.7 per cent higher.

In Dubai, the benchmark index eased 0.3 per cent, hit by a 0.8 per cent fall in blue-chip developer Emaar Properties and a 2.4 per cent slide in Damac Properties.

The Abu Dhabi's main index closed flat at 5,913 points.

The Qatari index added 0.2 per cent, with Commercial Bank rising 3.2 per cent. However, Aamal Company declined over five per cent, as the stock went ex-dividend.

Outside the Gulf, Egypt’s blue-chip index fell 1.6 per cent, as most of the stocks on the index retreated including Commercial International Bank, which was down 1.6 per cent.

— With inputs from Reuters