Earnings push Dubai stocks down
But banks and real estate lead Abu Dhabi higher
Dubai: Dubai Financial Market dropped on Wednesday taking a knock from disappointing blue-chip results, while Abu Dhabi stocks eked out slight gains led by banking and real estate stocks.
Dubai Financial Market traded 0.6 per cent lower to 2,632 points. DXB Entertainments pulled back 4.9 per cent and was the most heavily traded stock on DFM as over 23 million shares changed hands. The near 5 per cent drop marked its biggest single-day loss so far this year with investors rushing to sell the stock after its full-year losses widened by more than 200 per cent to Dh2.66 billion. Its parks and hotels have seen footfalls dwindle amid virus-induced curbs that forced the firm to take on around Dh2 billion worth of impairment and depreciation charges.
Urged to sell
Its majority shareholder Meraas Leisure and Entertainment offered late last year to acquire the rest of its shares and eventually take it private in a move designed to bring the company back to growth path. The board of directors recommended to shareholders to vote for the plan.
Logistics firm Aramex dropped 4.8 per cent to Dh4.2 after its full-year profits shrank over 40 per cent as costs shot up for long distance transportation and as it scrambled to accommodate the surge in e-commerce volumes.
Taking a pause
The food company Emirates Refreshments was the top loser falling 4.9 per cent to Dh32.8 despite narrowing down its full-year losses to Dh7.2 million from Dh10.1 million suffered a year before. Wednesday's drop was its second this year as it took a pause from a marathon rally that sent the stock skyrocketing to 537 per cent gains for the year riding on a plan to raise the authorized capital and diversify into other businesses.
Abu Dhabi Securities Exchange closed up 0.1 per cent to trade at 5,667 points. Aldar Properties advanced 1.4 per cent to Dh3.7 dirhams bouncing back from the last two sessions of drop. First Abu Dhabi Bank inched up 0.1 per cent to Dh15 as it partnered with Mastercard in a five-year strategic deal, aiming to enhance commercial payments for the UAE business.