Weak earnings hurt Dubai

Dubai : Egyptian stock markets yesterday fell for the fifth straight day of trading, while weak earning at several companies in Dubai weighed on the stock index there.

Egypt’s index fell 1.1 per cent to 13,135 points, with its technical outlook continuing to deteriorate; it fell below its July low of 13,261 points as well as support on its 100-day average, now at 13,167 points.

Data released at the end of last week showed annual urban inflation in July rose to 33.0pc, its highest level in decades, from 29.8pc in June.

Dubai’s index lost 0.8pc as DAMAC Properties dropped 2.0pc after reporting a second-quarter net profit of 701.3m dirhams ($190.9m), down 20.9pc from a year ago.

Builder Drake & Scull declined 3.2pc after it made a second-quarter net attributable loss of 182.7m dirhams ($49.8m), widely missing Arqaam Capital’s estimate of a loss of 48m and only slightly narrower than the year-ago loss of 207.6m dirhams.

The company also said it had terminated the services of its chief executive, Wael Allan. It did not name a new CEO.

GFH Financial, the most actively traded stock, plunged 10pc despite reporting a second-quarter profit of $30.2m, a leap from $5.5m a year ago.

“Fundamentals are in decent shape, and it has a good cash position - what might have driven the price down is disappointment because it did not announce a cash dividend,” said one trader.

In Abu Dhabi, Waha Capital fell 2.2pc after the investment firm reported its second-quarter net attributable profit fell 26.5pc to 95.6m dirhams.

Dana Gas lost 4.8pc ahead of its quarterly results, expected to be announced on Tuesday. The Abu Dhabi index fell 0.5pc.

The Saudi index edged down 0.3pc as half of the 12 listed banks fell; the largest by market value, Al Rajhi , fell 0.2pc.

Telecommunications firm Etihad Etisalat (Mobily), edged up 0.3pc, outperforming its rivals, after saying it had signed an agreement with Nokia, Huawei and Ericsson to modernise its network.

Mobily expects the agreements to cost about 2.4 billion riyals ($640m) over the next three years and said funding would come from the company’s cash flow and available facilities.

Shares of the first family-owned business to list in Qatar also slumped on Monday as they began trading. 

Qatari conglomerate Investment Holding Group tumbled 13pc from its initial public offer price to 8.70 riyals. Trading volume was about 3.3m shares, roughly one-third of the total volume in Doha on Monday.