Dubai: Abu Dhabi and Dubai stocks eked out hefty gains on the first day of the new week, extending their recent rally triggered by a host of upbeat first-quarter results. The markets are expected to sustain the run of gains as companies have last few days left for earnings announcements.
Abu Dhabi Securities Exchange shot up 1.1 per cent at 6,218 points in what was its fifth advance in the last six sessions and its biggest single-day leap since the middle of last month. International Holding surged 3.6 per cent adding to its advances after the firm reported unprecedented top- and bottom-line numbers. Financial sector also did not lag with First Abu Dhabi Bank racing up 1.1 per cent and Abu Dhabi Islamic Bank and Abu Dhabi Commercial Bank joining in the rally.
Wiping out losses
Arkan Building Materials soared around 15 per cent, the most permitted to rise in a session, after General Holding Group (Senaat) made its plan public to combine Arkan and Emirates Steel into one single entity. Sunday's surge has swung the stock into positive territory for the year as it closed the day up by 4.2 per cent.
The stock had plunged around 21 per cent at some point during the year after reporting substantially lower first-quarter profits and slipping into negative growth in 2020, a year challenged by the global health crisis. However, the merger deal could provide the firm a shot in the arm and help turnaround the business.
Results provide impetus
Dana Gas ticked up 1.4 per cent after posting more than 40 per cent jump in the first-quarter profit figures on the back of improved revenues from higher production in the Kurdistan Region of Iraq, where the production rose 9 per cent during the quarter. The bottom-line also received a push from watered down financial costs as borrowings dropped in the first three months of the year.
Dubai Financial Market advanced 0.8 per cent at 2,686 points, bolstered higher by blue-chip property stocks with Damac Properties, Emaar Properties and Emaar Development posting handsome gains ahead of their quarterly results.
Gaining on turnaround plan
Deyaar Development moved upward as investors appeared to have welcomed the fim's plan to address accumulated losses which ran into Dh1.73 billion as of March, representing 30 per cent of the capital. Out of the total amount, Dh217 million worth of losses were incurred last year due to impairment and fair value loss adjustments in the hospitality assets as a result of COVID pandemic.
As part of measures to cut down on the piled up losses, the firm said its completed and in-progress projects will go a long way in increasing revenues in the coming years, while it will continue to launch quality projects and diversify its sources of income through property and facilities management services.
Saudi Arabia's benchmark index closed the day unchanged, having slipped into red in five of the last six trading days. The heavyweight banking sector pulled the index lower whereas real estate and energy stocks provided some boost to the gauge. GCC region's largest equity market underperformed recently as it came under pressure from mixed first-quarter results that fell short of providing clear guidance to the investors.