Markets Update: Dubai Financial Market fell to its lowest point for more than a month in the first day of trade after it reported a 96 per cent slump in first quarter net profit - with video.
Dubai Financial Market shares fall on 96 per cent profit drop
Dubai Financial Market fell to its lowest in more than a month after it reported a near 100 per cent drop in first quarter profit.
The only Gulf stock market to float its shares yesterday announced a 96 per cent slump in the first quarter of 2011, compared to the year-ago period.
In the first day of trade after it reported its financials, the company's shares retreated 2.3 per cent to Dh1.28, the lowest since April 6. It was also one of the most actively traded stocks with nearly 9 million shares changing hands.
Net income for the quarter ended March 31 was Dh2.18 million ($594,000), as trading volumes declined amid political unrest in the Middle East.
But Abdul Jalil Yousef Darwish, DFM's chairman, said low trading activities were "purely passing circumstances".
The bourse had a profit of Dh53.58 million in the first quarter of 2010.
The Dubai stock market was flat at 1,589.58 points and the Abu Dhabi measure edged 0.2 per cent lower to 2,679.72 points.
A sell-off across UAE and wider regional bourses has been seen as a correction by fund managers and analysts given the rally following the wave of political turmoil that spread across the region.
Amjad Bakir, the trading manager at Menacorp Alternative Investments, said volumes needed to pick up before any significant move in the market.
"Most investors have seen profit announcements for first quarter as disappointing and the general feeling has been bearish," he said.
"The only steam for the market at the moment is volume," Mr Bakir added.
Commodities have, however, reversed losses that last week saw some of the biggest two-day sell-offs since 2008.
Brent crude, the global benchmark, gained 1.6 per cent to $110.80 per barrel, and Crude for June delivery advanced as much as 1.9 percent to $98.99 a barrel in electronic trading on the New York Mercantile Exchange.
The contract fell 2.6 per cent to $97.18 on May 6, the lowest settlement since March 15.