x Abu Dhabi, UAESaturday 20 January 2018

Investors pour back into Tamweel on UAE bourses

Market Wrap: Tamweel ended the week on a positive note as the Islamic mortgage lender benefited from investors buying positions in the company - with video.

Tamweel, the Islamic mortgage lender, ended the week in the black as investors poured back into the company for the first time in more than two years.

Shares in the company climbed 6 per cent higher at 85 fils, reversing the near 20 per cent slump in value in the first two days of trading since November 2008 when it last traded at 99 fils.

Brokers and fund managers had been waiting for its shares to reach a cheap valuation before placing any positions in the company.

Most regional stock markets ended the week lower as declines in US markets and a sharp drop in oil weighed on sentiment.

But as the last set of first quarter results trickled through, specific company news dictated the movement of the market.

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 (Dh128.5m) 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.

Deyaar International, 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 of Dh26m compared with a net loss of Dh100m for the same period last year.

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 Dh62m, Analysts at investment bank Nomura had forecast Dh25m 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.

Dubai shares ended the week 0.7 per cent lower at 1,596.80 points and Abu Dhabi's market fell 0.1 per cent at 2672.89 points.

Kuwait's benchmark index slipped 0.1 per cent to 6,502.50 points and Doha's market fell 0.6 per cent to 8,711.49 points.

Saudi Arabia's market was closed.