Stock market: Dubai falls, Abu Dhabi gains

Dubai: After its fourth quarter profits on Saturday beat analysts’ estimates, Air Arabia fell the most in six months, dragging the Dubai Financial Market index down by 0.20 per cent to close at 1890.31.

After last week’s gain of 3.2 per cent, Sharjah’s flagship and the region’s biggest discount carrier dropped 2.73 per cent to 0.89 fils. Earlier, Air Arabia had reported a 55 per cent jump in its full year profit to Dh425 million from Dh274 million a year earlier.

“It’s part of profit taking by the investors after the stock performed well in the past [on bets] of a good dividend announcement,” said Tareq Qaqish, head of asset management and fund manager Al Mal UAE Equity Fund, Al Mal Capital, Dubai. Air Arabia board proposed cash dividend of 7 per cent of capital, or 7 fils per share, for FY12.

In terms of turnover on the day, Air Arabia came in third, only after Ajman Bank and Emaar Properties, with its total value at Dh31.10 million.

However, most of the major stocks fell on the day, except Emirates NBD, which jumped 3.24 per cent to close at Dh3.82. Among the major losers were Emaar Properties, which fell 0.60 per cent to Dh4.96.

Abu Dhabi

Neighbouring emirate Abu Dhabi’s stock index rose sharply yesterday led by Aldar Properties and Sorouh Real Estate, both of which agreed last month on a state backed, all-share merger.

The Abu Dhabi Securities Exchange General Index jumped 1.14 per cent to close at 2968.54.

The shares of two of biggest real estate companies in Abu Dhabi had the highest turnover on the day with Aldar recording a value of Dh84.42 million and Sorouh Dh47.83 million. Aldar gained 5 per cent to end the day at Dh1.47 and Sorouh rose 2.92 per cent to Dh 1.76.

According to Tareq Qaqish, fund manager of Al Mal UAE equity fund and head of asset management at Al Mal Capital, Dubai, said the merger news seems to be continuing to have a positive impact on both the stocks.

Among the other gainers in the top five were Ras Al Khaimah Ceramics and United Arab Bank. Ras Al Khaimah Properties was the third highest traded stock, but investors prefered to sell its shares. The stock fell 3.39 per cent to Dh0.57. Among the other losers

Of the 34 stocks traded on Sunday, 18 advanced, nine declined and seven remained unchanged.