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Gulf stocks see limited gains, property shares weigh on Dubai

Gulf stocks see limited gains, property shares weigh on DubaiDUBAI: Dubai shares were sluggish on Tuesday, dragged down by property stocks, while other Gulf markets closed in positive territory.

Gains were modest amid very thin trading volumes during the holy month of Ramadan, a risk-off sentiment in foreign markets as well as slightly lower oil prices over the past few days.

In Dubai where the index slipped 0.2 percent, property stocks such as Union Properties and blue-chip Emaar Properties lost 1.1 percent and 0.6 percent, respectively.

Building contractor Drake & Scull International shed 1.7 percent, after gains this month following positive first-quarter results.

The company reported a net profit of 7.3 million dirhams ($1.99 million) for the first quarter of this year, against an 838.8 million loss in the first quarter of 2017.

However, in a note earlier this week, research firm AlphaMena said a sustainable recovery for the stock was unlikely “since the contractor is still facing liquidity issues and needs to improve its business efficiency.”

Heavyweight Dubai Islamic Bank rose 1.2 percent to 4.79 dirhams, recovering after falling early on Tuesday. The bank’s shares have been sliding since it launched a rights issue in mid-May with an issue price of 3.11 dirhams per new share. The rights trading period ends on May 30.

In Saudi Arabia, the index rose 0.5 percent, lifted by gains in banking and petrochemical shares. Alinma Bank and Bank Aljazira rose 0.4 percent and 1.4 percent, respectively. Blue-chip Saudi Basic Industries Corporation climbed 1.7 percent.

The Qatari index closed flat, after surging earlier this week because of rising blue-chip stocks and government plans to allow full foreign ownership of companies.

In Abu Dhabi, banking shares such as First Abu Dhabi Bank and Abu Dhabi Commercial Bank gained 1.2 percent and 0.6 percent, respectively. The index rose 0.6 percent.

Copyright Reuters, 2018

Source: Brecorder

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