Bank shares drag Tadawul down

15/02/2017 05:26 AST

The Tadawul All Share Index (TASI) on Tuesday fell 0.4 percent in thin trade. Banking shares were the main drag with 10 of the 12 listed banks dropping; Bank Aljazira 1020.SE was the worst performer, retreating 1.8 percent.

Corporate earnings and other news from companies in Dubai helped that market rise, while Abu Dhabi was supported by earnings at Union National Bank and an arbitration judgment in favor of Dana Gas.

Dubai’s index rose 0.4 percent as Drake & Scull climbed 6.9 percent after slumping by as much as 8 percent in the opening minutes of trade. The builder reported a net loss in the fourth quarter of AED490 million ($133.5 million) versus a profit of AED14.7 million in the prior-year period.

But after initially reacting to that news, investors focused on the company’s statement that as part of a turnaround and capital-restructuring plan, it was considering proposing a rights issue of AED500 million in equity to a strategic investor, and that it had secured a binding offer to participate from a local investment firm.

“The initial drop in price triggered many buy orders — traders were seeking to buy the stock on any price dip,” said a Dubai-based broker. “Also, investors are confident in the long-term outlook for the company.”

DXB Entertainments rose 2.8 percent after the company reported revenue of AED75.9 million in its first year of operating amusement parks. But the company made a net loss for 2016 of AED485 million against a loss of AED111 million in 2015.

Shuaa Capital jumped 5.8 percent after it made a narrower quarterly net loss attributable to equity holders of AED18.9 million, versus a loss of AED161.8 million in the prior-year period. Abu Dhabi’s index added 0.2 percent on the back of a 6.4 percent jump in shares of Dana Gas, which said a consortium including it was awarded $121 million by a London arbitration tribunal in its dispute with the Kurdistan Regional Government. The court also dismissed the government’s counter-claims.

Union National Bank climbed 4.1 percent after reporting a 29 percent year-on-year rise in quarterly net profit. The bank’s board proposed a 20 percent cash dividend for 2016, the same as for 2015.

Kuwait’s index rose 1.4 percent to 6,751 points in heavy trade, heading back toward technical resistance at its mid-January peak of 6,980 points. Ten of the top 15 largest companies by market value advanced with telecommunications operator Zain adding 3.2 percent.

Arab News