UAE bourses bearish on spate of weak earnings

Dubai: A decline in global stocks combined with rather weak earnings announced by several companies yesterday pushed the stock indices in Dubai and Abu Dhabi significantly lower.

The DFM index in Dubai nosedived 3.9 per cent, posting its largest one-day drop since August. The ADX index in Abu Dhabi fell 2.38 per cent.

The top loser in Dubai was Gulf Finance House, which fell 10 per cent to Dh1.62. Financial services company Al Madina fell another 9.88 per cent after slipping 10 per cent on Wednesday.

Another finance service operator, Global Investment House, was also swept into the downward spiral, falling 9.04 per cent to Dh1.61. Top traded builder Emaar Properties slumped 6 per cent to Dh4.39.

Dubai Financial Market (DFM) stocks fell 8.59 per cent after it reported a 67 per cent drop in its nine-month profit on Wednesday.

In Abu Dhabi, shares of Methaq Takaful fell 8.99 per cent. Sorouh Real Estate lost 6.3 per cent after announcing a 75 per cent decline in third-quarter net profit, and Aldar Properties lost 5.4 per cent.

Profit-taking

"The market index in Abu Dhabi could slip to its break-out level of 2,970-3,000 as part of a correction on profit-taking by investors and on weak global cues," Mousa Haddad, National Bank of Abu Dhabi Asset Management's head trader, told Gulf News.

With inputs from Himendra Mohan Kumar, Staff Reporter