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Dubai shares decline on lower earnings |
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08.18.2009 |
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Bloomberg reported that the Dubai Financial Market General Index declined 2.2% while Abu Dhabi’s index and Qatar’s DSM 20 Index lost 0.5%.
Mr Rabih Sultani hedge fund manager at Duet Mena Limited said that “People have been looking at earnings here even more than oil and other indicators.”
Mr Sultan said that “The biggest weakness we’ve seen in Dubai is real estate and that goes for Qatar too, so those companies are having the biggest drag on the market right now.”
Union Properties, the Dubai based developer fell the most in 6 months after reporting a loss.
Industries Qatar fell to a 2 week low after posting a H1 profit that declined 43%. Crude fell 4.3% on August 14th 2009, finishing the week at USD 67.51 per barrel.
Crude prices, which have fallen 54% since their July 2008 high of USD 147.27 per barrel, have heightened the blow of the credit crunch on the region’s real estate and finance industries. Property prices in Dubai have slumped and the finance industry faced a slowdown. The 6 countries that make up the Gulf Cooperation Council collectively supply 20 per cent of the world’s oil.
Union Properties PJSC, the Dubai based developer that suspended work on a Formula One themed park, fell to its lowest since August 5th 2009 after the company said it had a Q2 loss on property write downs.
The company said that the loss was AED 228 million after the company reported a profit of AED 317.7 million in the year earlier period. Union Properties wrote down AED 304 million on the value of its properties. Union Properties, whose CEO Mr Simon Azzam resigned in June is restructuring AED 956 million of short term debt into longer term facilities.
Industries Qatar lost as much as 4.6% and last traded down 3.1% at QAR 106.7, the lowest level since August 2nd 2009.
The largest publicly traded company in the Gulf country said that profit declined as the global recession cut demand for petrochemicals and steel. Saudi Arabia’s Tadawul All Share Index added 0.2% to 5,830.39 at 1:29 PM in the kingdom.
Oman’s MSM 30 Index gained 0.1% while the Kuwait Stock Exchange advanced 0.3%. Bahrain’s measure fell by 0.4%.
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Source:www.steelguru.com |
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