Dubai: Dubai stock market jumped close to 2 per cent yesterday on the back of a surge in du’s share price — its highest close since 2008 — after the telecom operator announced its strong fourth quarter results and an impressive cash dividend.
Du share price made its largest one day gain in 10 months, up 11.65 per cent at Dh4.12. The Dubai index rose 1.73 per cent to close at 1941.43.
Beating estimates, du reported a net profit after royalty at Dh1.98 billion, up from Dh1.10 billion in 2011. The company paid a royalty of Dh844 million last year.
“Dubai was positive following lead from du which posted strong results but there were some one off reversal of provisions for royalty payments that were no longer required,” said Saleem Khokhar, head of equities at national bank of Abu Dhabi asset management group. “The dividend that was declared was ahead of market expectations and puts the company on an attractive circa eight per cent dividend yield.”
Tabreed was the second highest gainer on the day, up 8.44 per cent at Dh1.67.
After recent gains, Abu Dhabi shares marginally fell yesterday with the general index down only 0.19 per cent to close at 2964.91.
However, among the top five traded and turnover stocks continued to be the two reale state companies, Aldar Properties and Sorouh Real Estate.
“Abu Dhabi was quiet [yesterday] after its recent strength,” said Saleem Khokhar, head of equities at National bank of Abu Dhabi’s Asset Management Group. “Some profit taking being seen in Aldar and Sorouh after strong gains over the past few weeks.”
Aldar, the fifth highest loser yesterday, dropped 1.95 per cent to Dh1.51 and Sorouh fell 1.07 per cent to Dh1.85. Among the gainers were United Arab Bank and Union National Bank, which rose 6.42 per cent and 2.94 per cent respectively.