x Abu Dhabi, UAETuesday 23 January 2018

Tamweel in a tailspin after two years in the cold

Investors dumped stocks in Tamweel in its first day of trading in more than two years, pushing the shares limit down.

How Dubai's bourse closed on May 10, 2011.
How Dubai's bourse closed on May 10, 2011.

Tamweel, the Islamic mortgage lender whose shares had been suspended for more than two years, hit the Dubai Financial Market's 10 per cent limit for downwards stock movement in its first day back yesterday.

Shares in the company closed at 89 fils as investors dumped the stock as soon as trading opened. The shares were last traded at 99 fils in November 2008.

Analysts expected the fall because investor money had been tied up for so long.

Arabtec, the UAEs largest publicly traded construction company and another Dubai stock in focus yesterday, reversed intraday losses to end higher even as first-quarter results were a disappointment for analysts.

The company posted profits of Dh26.6 million, a decline of 80.2 per cent on the same quarter last year.

Elsewhere in Dubai, Tabreed, the district cooling company, posted a decrease in profits of 25.1 per cent to Dh32.8m for the quarter, although the figures beat analysts' estimates of profits of Dh26m. The company's shares ended flat at Dh1.35.

The Dubai Financial Market General Index ended 1.2 per cent higher at 1,606.78 with Union Properties among the best performers. It added 7.1 per cent to 42.4 fils after its first-quarter results beat most forecasts. The Abu Dhabi Securities Exchange General Index closed 0.2 per cent down at 2,670.82 points.

Saudi Arabia's Tadawul All-Share Index closed 0.6 per cent higher at 6,712.97 points, propped up by petrochemical stocks.

Traders said the recovery in the price of oil was helping to sustain confidence in the index.

Elsewhere, Doha's market rose 1.4 per cent to 8,665.42, its highest since April 18.