Dubai: Dubai stocks edged back Sunday with lackluster corporate earnings taking away the risk appetite from investors, while Abu Dhabi stocks flatlined as heavyweight lenders dropped eclipsing gains from robust results.
Dubai Financial Market slipped 0.4 per cent to close at 2,623 points. Mashreq bank sank 5 per cent to Dh64.1 in its first trading after posting Dh1.3 billion in full-year losses versus Dh2.1 billion in profits a year earlier, which the lender termed as a direct result of lower operating income and higher risk charges. It took on impairment charges of Dh3.4 billion, while its revenues declined by 14.1 per cent to Dh 5.1 billion taking a hit from low interest rate regime and from the impact of pandemic and slower economic activities.
Slipping from highs
Emirates Refreshments traded at Dh31.2 after dropping nearly 5 per cent in each of the two trading sessions that followed its full-year results announcement that saw the firm report losses and lower revenues. The firm is still up a whopping 506 per cent year-to-date, which it eked out from a long winning streak on the back of a plan to raise authorized capital and venture into new business streams.
Amlak Finance dropped 2.9 per cent to Dh0.23, its lowest level in almost 10 months, after its full-year losses widened, while DAMAC Properties edged back 1.6 per cent as its losses soared to Dh1.04 billion from Dh37 million in 2019.
Abu Dhabi Securities Exchange closed at 5,666 points, roughly unchanged from the last session with Waha Capital jumping 4.1 per cent to Dh1.3 to end three consecutive days of losses. It reported a full-year net profit of Dh231 million in eye-catching turnaround from Dh616 million in losses a year before. The firm also announced Dh0.06 a share dividend amounting to 48 per cent of the profit versus no dividends in 2019.
Aldar Properties gained 1.6 per cent to Dh3.7 ahead of its full-year results. RAK Ceramics added a further 5.9 per cent after rising 4.3 per cent in the earlier session as its board of directors declared a 7.5 per cent in cash dividend despite turning a loss-maker in 2020.
But the index still closed little changed as more heavyweight stocks pulled it in the other direction with First Abu Dhabi Bank and Abu Dhabi Islamic Bank shedding 0.5 and 0.6 per cent, respectively.