x Abu Dhabi, UAESaturday 22 July 2017

Dubai airport deal fails to lift local markets

Markets Update: UAE markets subdued after the announcement of a $7.8bn expansion of Dubai International airport.

Dubai's ambitious expansion plans for its largest airport failed to provide lift off for the emirate's market on the open.

The Dubai Financial Market was flat at 1,553.10, while Abu Dhabi's measure fell 0.3 per cent to 2,708.22.

Construction companies, such as Arabtec and Drake & Scull International, were among the most traded. DSI rose 2.04 per cent to Dh1 a share, while Arabtec fell 0.7 per cent to Dh1.31 per share.

But the enthusiasm surrounding the airport's US$7.8 billion expansion was being tempered by traders' speculation over earnings statements, said Talal Touqan, head of research at AlRamz Securities.

"It will by all means reflect positively on all these in the long-run, but nowadays, traders are just busy speculating over results."

Dana Gas said it was mulling "plans to list some of its assets on the London Stock Exchange" and the refinancing of its 2008 sukuk, though it stopped short of giving further details. The stock is one of the most heavily traded on the Abu Dhabi market this morning, falling 1.61 per cent to 61 fils per share.

Companies elsewhere in the Gulf were starting to see movement from the release of second quarter earnings, starting with Qatar.

Yesterday, Qatar National Bank posted a 25.8 per cent rise in net profits for the second quarter to 1.8 billion Qatari riyals. The bank's shares have risen 0.21 per cent to 145 Qatari riyals per share this morning.

Asian stocks were a mixed big in the early hours of the morning, with the Nikkei 225 falling 0.1 per cent to 10,071.14 and the Hang Seng index up 0.4 per cent at 22,618.07.