Dubai exchange retreats by one percent

27 September 2010

Investors booked profits at the local bourse DFM mostly at finance and real estate shares. The DFM General Index ended at 1,699.12, while traded value and volumes halved to Dhs254.03m and to 154.71m shares respectively. Financial heavyweights Emirates NBD (off three percent at Dhs2.88) and Shuaa Capital (down 3.5% to close at Dhs1.10) posted losses, while Dubai Islamic Bank outperformed by closing 0.86% higher at Dhs2.34. DIB announced yesterday that it pushed its share at Islamic home finance company Tamweel up from a fifth to 57%. Emaar as the most liquid share lost 1.8% to close at Dhs3.80. After rising over 20% in value over the last four weeks, Arabtec declined by half a percent to finish at Dhs2.01. Global Investment House in Kuwait said on Satuday under the current price Arabtec’s shares are trading at a P/E multiple of 5.1x and 5.9x for 2010 and 2011 respectively and issued a ‘Buy’ rating on the firm, adding that “Given the amount that Nakheel owes to Arabtec, which we estimate to be approximately AED330mn, translates into AED132mn. With over AED4.6bn in receivables, the Nakheel amount is relatively minor and is unlikely to make a significant difference.”

Investors booked profits at the local bourse DFM mostly at finance and real estate shares. The DFM General Index ended at 1,699.12, while traded value and volumes halved to Dhs254.03m and to 154.71m shares respectively. Financial heavyweights Emirates NBD (off three percent at Dhs2.88) and Shuaa Capital (down 3.5% to close at Dhs1.10) posted losses, while Dubai Islamic Bank outperformed by closing 0.86% higher at Dhs2.34. DIB announced yesterday that it pushed its share at Islamic home finance company Tamweel up from a fifth to 57%. Emaar as the most liquid share lost 1.8% to close at Dhs3.80. After rising over 20% in value over the last four weeks, Arabtec declined by half a percent to finish at Dhs2.01. Global Investment House in Kuwait said on Satuday under the current price Arabtec’s shares are trading at a P/E multiple of 5.1x and 5.9x for 2010 and 2011 respectively and issued a ‘Buy’ rating on the firm, adding that “Given the amount that Nakheel owes to Arabtec, which we estimate to be approximately AED330mn, translates into AED132mn. With over AED4.6bn in receivables, the Nakheel amount is relatively minor and is unlikely to make a significant difference.”

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.