Results continue to weigh on Dubai index
DUBAI (Gulf News): Weaker than expected results from Dubai Investments forced investors to sell the stock, weighing on the Dubai index.
Net profit of DIC nearly halved to Dh1 billion in 2018 because of loss on investment properties and financial investments when have been battered due to current market conditions.
“Dubai Investment’s 2018 earnings look much worse than they are at the moment with losses stemming from revaluation which are not meant to be directly recognized by investors as the firm has recovered quite strongly since the recession with a current book value estimation in excess of Dh2.30,” Essam Kassabieh, Senior Financial Analyst at Menacorp, said.
Dubai Investments has been on a consistent fall from a high of Dh2.65 in October 2017 to the current level at Dh1.17, registering a fall of 56 per cent. Traders who were expecting good results from the company were forced to exit the stock even as a few traders booked losses.
“A bearish break below the support level hinted at a further decline in DIC to Dh1.16/1.06,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said in a note on February 7. The stock was trading below the support level of Dh1.28 on Thursday. DIC, which has a weightage of 7.19 per cent on the index, closed 6.4 per cent to be at Dh1.17, after falling 13 per cent in last six trading sessions. Other stocks such as Damac, Aldar Properties, DFM also saw southwards movement. Damac Properties closed 3.17 per cent higher at Dh1.22. DFM shares closed 2.47 per cent lower at Dh0.791. “The stock is showing a negative trend and may target Dh0.75.0.70 in the short term,” Prakash said.
The Dubai Financial Market general index closed 0.51% lower at 2,529.72. The Abu Dhabi Securities Exchange general index closed 0.59% lower at 5,082.01. Aldar Properties closed 1.94 per cent lower at Dh1.52. Etislat closed at 0.25 per cent lower at Dh16.96. Saudi Arabia’s Tadawul index closed 0.46 per cent lower at 8,573.21. The Muscat MSM 30 index closed 0.16% higher at 4,158.49.