Tabreed shares extend gains in weak Dubai market

21/06/2017 02:45 AST

Tabreed shares extended gains on Tuesday on expectations of a positive outlook, even as Emaar Properties witnessed mild profit-taking on the Dubai bourse.

Tabreed shares closed 3.77 per cent higher at Dh2.20, after hitting an upper circuit in the previous session.

“Tabreed is a positive story that Mubadala managed to take the company out of the woods. It makes sense for investors to look positively at the stock by having strategic investors such as Engie to gain access to Tabreed as one of the cooling operator that has a significant market share,” said Tariq Qaqish, managing director at Menacorp Asset Management.

Tabreed was one of the seven stocks, which ended in green. The Dubai Financial Market General Index closed in the negative zone weighed by a mild weakness in Emaar Properties. The index closed 0.18 per cent lower at 3,452.10.

In other stocks, Emaar Properties closed 0.62 per cent lower at Dh7.98. “Emaar is purely profit-taking as the stock has made a decent move. Traders might become less active as the market would be closed for a long Eid holidays,” Qaqish said.

Gulf Finance House closed nearly 1 per cent lower at Dh2.18. Drake and Scull closed more than 3 per cent lower at Dh0.418.

The Abu Dhabi Securities Exchange closed 0.79 per cent lower at 4,455.73. Dana Gas continued to extend losses for another session. Dana Gas closed 4.41 per cent lower at Dh0.65. National Bank of Abu Dhabi (also called First Abu Dhabi Bank) closed 1.85 per cent lower at Dh10.60.

Saudi’s Tadawul index was down 0.95 per cent after gaining more than 2.5 per cent in the previous session. The index was at 6,979.79.

“The political issue and the weakness in oil prices is taking a lot of steam (out of Saudi). We would see hesitance from foreign investors until uncertainty is cleared,” Qaqish said. MSCI will take a call whether to upgrade the Saudi market in the emerging market index, of which the UAE is already a part of.

Elsewhere in the Gulf, the Qatar exchange index closed 1.49 per cent lower at 8,934.37.

Gulfnews