Emaar lifts Dubai as oil depresses others

Dubai : Dubai shares rose yesterday, helped by strong earnings at Emaar Development and outperforming the Gulf region, where most markets weakened amid a slight correction in oil prices and selective profit-taking.

Oil dipped after a rising rig count in the United States pointed to higher production there. 

The Dubai index added 0.6 per cent, fuelled by gains in property stocks and financials. Lender Emirates NBD was up 0.9pc.

Emaar Properties jumped 2.7pc, while its unit Emaar Development climbed 0.9pc after the development firm recorded a net profit of 819 million dirhams ($223 million) in the first quarter of 2018, versus 506 million a year earlier.

SICO Bahrain had forecast a net profit of 767 million dirhams and EFG Hermes’ forecast was 800 million dirhams.

“The results from Emaar Development as well as Emaar Malls suggest the group is navigating the current downturn rather well,” said Vrajesh Bhandari, a portfolio manager at Al Mal Capital.

Emaar Malls’ net profit rose 1.7pc to 548 million dirhams, in line with SICO Bahrain’s forecast.

Emaar and other property stocks have been a drag on the Dubai stock market this year due to concerns over the outlook for property prices. The Dubai index is down 9pc so far this year.

In Saudi Arabia, the main index was down 0.2pc, with banks largely providing support. Energy stocks were hit by oil’s correction and profit-taking after recent gains.

Rabigh Refining and Petrochemical dropped 5.6pc as investors took profit after the stock’s big rally this year. The stock is up 67pc so far this year.

Saudi Basic Industries (SABIC) dropped 2.9pc, a day after its earnings broadly met analysts’ forecasts.

Al Rajhi Bank rose 0.3pc and Banque Saudi Fransi added 0.9pc.

Saudi National Petrochemical Co (Petrochem) jumped 2pc after solid quarterly results, making a net profit of 333.9 million riyals versus 167.9 million a year earlier.

In Abu Dhabi, Etisalat lost 0.9pc and Aldar Properties declined 0.5pc, pulling down the main index.

Dana Gas rose 4pc, rebounding from a sharp drop in the previous session. The stock has been volatile after an English court refused the company’s application to overturn a previous order restraining Dana Gas from distributing dividends to its shareholders for 2017.

Qatar’s index lost 0.3pc as lender Masraf al Rayan shed 0.5pc and Barwa Real Estate fell 1.8pc.

In Egypt, Global Telecom Holding continued its downward spiral, falling 3pc.

The stock has been under pressure since the start of the month after majority shareholder Veon withdrew an offer to buy the rest of the company and said it would not make another.

It has lost more than a fifth of its value in the last month. The benchmark index was flat.