x Abu Dhabi, UAE Thursday 20 July 2017

Shuaa reverses a Dh56.6m loss to get back into profit

Markets Update: Shuaa Capital rises more than 5 per cent after the country's largest investment bank said it was back in the black.

ShuaaCapital gained the most in a week after the country's largest investment bank reported it was back in profit reversing a Dh56.6 million loss helped by aggressive cost cuts and strength in its asset management business.

Shuaa reported a net income of Dh0.6 million for the second quarter, compared with a loss of Dh56.6 million in the same period last year. The results included a Dh27.7 million of gains on other investments and cost cuts amounting to Dh62.8 million, the company said in an emailed statement.

The stock rose 5.2 per cent to Dh1, the highest since July 18.

In the first quarter, Shuaa said it would cut 10.7 per cent of its staff, or 39 jobs to reduce costs.

"It is reasonable to expect that with an improvement in market conditions, we will generate further momentum with our clients, build market share and start executing investment banking mandates," said Shuaa's chief executive, Sameer Al Ansari.

The Dubai Financial Market General Index was down 0.6 per cent to 1510.58 points. In the capital, the Abu Dhabi Securities Exchange General Index was up 0.8 per cent to 2663.13.

Elsewhere in the region, Kuwait's index was unchanged at 6063.80 points. Bahrain's measure was unchanged at 1298.95 points. Oman's index rose 0.1 per cent to 5948.46. Qatar's index was unchanged at 8399.80 points. The Saudi Tadawul All-Share Index was down 0.8 per cent to 6472.03 points.