x Abu Dhabi, UAETuesday 25 July 2017

Dubai shares reverse slide on Tamweel report

Dubai' shares rose yesterday ending a four day losing streak after Tamweel reported fivefold earnings on Tuesday.

Tamweel shares rose 1.6 per cent, the highest in a week. Rich-Joseph Facun / The National
Tamweel shares rose 1.6 per cent, the highest in a week. Rich-Joseph Facun / The National

Shares on the Dubai Financial Market General Index rose yesterday, ending four consecutive days of losses, pushed up by strong earnings from Tamweel. The bourse rose 0.2 per cent to 1,525.83.

Tamweel shares rose 1.6 per cent, the highest in a week, after the Islamic mortgage firm reported a fivefold increase in profits for the second quarter on Tuesday. Shares closed at 89 fils on the Dubai bourse.

Net income rose to Dh27.7 million, from Dh5.4m a year earlier.

The stock, which was suspended for more than two years after the financial crisis cut the company's access to credit, has recently become a favourite among retail investors after it resumed trading in May.

Brokers said while it was still too early to get significant interest from Western institutions, clearly the company was on the right track once more and that was an encouraging sign.

"The company will need to speak directly with foreign investors," said Julian Bruce, the director of equity sales at EFG-Hermes in Dubai.

The Abu Dhabi Securities Exchange General Index fell 0.3 per cent to 2,688.32. Aldar Properties, the developer behind Yas Island and Ferrari World, was the top traded stock on the Abu Dhabi bourse.

The stock rose 1.6 per cent to Dh1.26. Sorouh Real Estate, Abu Dhabi's second-biggest property developer, rose 0.8 per cent to Dh1.25.

Elsewhere in the region: Kuwait's index rose 0.4 per cent to 6,033.50; Bahrain's measure fell 0.5 per cent to 1,309.73; Qatar's benchmark was unchanged at 8,388.50 points; and the Saudi Tadawul All-Share Index rose 0.7 per cent to 6,489.50.

halsayegh@thenational.ae