Markets Update: Two stocks, Tamweel and Air Arabia, send Dubai's benchmark into the red. Aldar Properties jumps on after ratings upgrade by Standard & Poor's.
One-off entangles Tamweel
The sale of one stock, and the distribution of cash dividends for another, pushed the Dubai Financial Market (DFM) General Index lower yesterday.
Tamweel fell 9.4 per cent to Dh1.24 after the Sharia-compliant mortgage company on Tuesday reported a 33 per cent decline in net profit as it set aside US$21.5 million for litigation.
"It was a one-off provision but wasn't taken well by retail investors," said Marwan Shurrab, the chief trader at Gulfmena Investments in Dubai. "They decided to exit, which caused selling pressure on the stock."
Air Arabia, the region's biggest budget airline, fell 9.3 per cent after the price adjusted to 65 fils after the payment of a 6 fils cash dividend.
The DFM General Index fell 0.3 per cent to 1,642.65. Abu Dhabi shares inched higher after the ratings agency Standard & Poor's on Tuesday upgraded its credit rating on Aldar Properties to B+ from B.
Aldar rose 1.8 per cent to Dh1.13. Sorouh Real Estate, the capital's second-biggest developer, rose 0.9 per cent to Dh1.11.
The Abu Dhabi Securities Exchange General Index rose 0.3 per cent to 2,513.01.
Elsewhere in the region: Kuwait's measure rose 0.4 per cent to 6,268.00; Bahrain's gained 0.8 per cent to 1,153.68; Oman's MSM 30 Index was up 0.4 per cent to 6,007.71 and Qatar's QE Index was little changed at 8,717.09. Saudi Telecom reported a 60 per cent surge in first-quarter profit to 2.5 billion riyals. However, the Saudi Tadawul All-Share Indexwas little changed at 7,513.85.