Dubai: The Dubai benchmark index extended gains on Tuesday post-stability on oil prices, even as analysts expected weaker than expected earnings from companies to put a brake on the rallying Gulf indices.
Dubai index rose more than a per cent to end at 3,562.94, after witnessing a late reversal from early losses on Monday. In stock specific action, Islamic Arab Insurance Company ended more than 14.4 per cent higher at Dh0.556. Emaar Properties ended more than 1 per cent higher at Dh6.65.
Hits Telecom Holding ended more than 11 per cent higher at Dh0.45.
“I don’t think the rebound is sustainable and people are enjoying the party as long as it lasts,” Muhammad Shabbir, head of equity funds & portfolios at Rasmala.
Dubai index may slash another 400-500 points due to weaker than expected earnings, Shabbir added. The index fell to a low of historical low of 2,600 on January 21, its lowest level in two and a half years.
Earnings
“We are in the middle of the earning season and results which are coming out don’t look very good. Results so far have been behind expectations, and if we look at the results they are down 30-40 per cent. Over the past 5 months, expectations have lowered a lot, and beating expectations is not a big deal,” Shabbir said.
Emirates NBD, which announced its results on Tuesday, posted a weaker than expected first quarter net profit. Net income advanced to Dh1.81 billion in the first quarter to March from Dh1.67 billion a year earlier,
In Abu Dhabi, the general index closed 0.99 per cent higher at 4,602.38. Abu Dhabi Islamic Bank ended up 9.5 per cent at Dh4.73. Taqa closed 8.33 per cent higher at Dh0.65. Dana Gas ended more than 1.5 per cent higher at Dh0.59. Out of a total of 33 stocks traded on the exchange, shares of 27 firms rose, while other 7 firms fell.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 1.67 per cent higher at 6,531.90, while Qatar exchange index closed 0.64 per cent higher at 10,297.39.
