Markets Update: First quarter results dictated investors' decisions as Deyaar Development and Dana Gas rose to new highs on profit announcements
Deyaar's day on Dubai's bourse after swinging into black
Deyaar Interntional, the company part owned by Dubai Islamic Bank, reached its highest intraday level in a week as investors were buoyed by the company's swing to a net profit.
The company yesterday said it swung to a first quarter net profit of Dh26 million compared with a net loss of Dh100 million for the same period last year as it delivered new projects.
It was the most actively traded stock in Dubai with over 16 million shares changing hands as the shares rose more than 3 per cent to 31.2 fils in early trading.
In the capital, Dana Gas rose 1.5 per cent to 69 fils early trading session, as it said its first-quarter net profit almost tripled to Dh92 million compared with the year-ago period, beating most analyst expectations.
EFG Hermes had forecast its net profit at Dh62 million, Analysts at investment bank Nomura had forecast Dh25 million while Kuwait-based Global Investment House had pencilled in an Dh65.
But shares in the oil and gas company slipped to 68 fils as its chief executive Ahmed Al-Arbeed said the fuel producer is owed $150 million for oil it pumped in Iraq's Kurdish region.
Investors are making asset allocations depending on specific company news, said Sachin Mohindra, the lead manager for Invest AD's GCC Focus Fund, which manages $35 million assets under management.
"Most of the results are out of the way [but there is] trading on specific news flow," Mr Mohindra said, adding that investors are keeping an eye on liquidity, which has subsided since the high volumes during the Arab Spring.
The Abu Dhabi Securities Exchange traded flat at 2675.30 points, and the Dubai Financial Market General Index lost 0.2 per cent to 1,605.04 points.