GFH sees sharp volatility after results as key board member resigns

Dubai

Amid mixed news flow on strong third quarter results and resignation of a key board member, shares of Gulf Finance House (GFH) fell till mid-session, but recovered later due to bulk buying in many lots in a span of 10 minutes. The Dubai Financial Market general index stayed stable for a third session in a row.

Gulf Finance House fell to a low of Dh1.35, a 52-week low at 11.05am, but later recovered after 40 million shares were traded within 10 minutes during mid-session. GFH closed 6.25 per cent higher at Dh1.53.

The sharp volatility was witnessed even as GFH swung into net profit in the third quarter to September. Jassim Al Seddiqui resigned as board member of GFH. Integrated Capital, which has 8.01 per cent stake in Gulf Finance House, is owned by Shuaa, of whose Jassim Al Seddiqui is the chairman. Shuaa Capital was the top gainer, after witnessing an upper circuit of Dh1.21, but later closed at Dh1.15, up 8.49 per cent.

Buying in Emaar Properties ahead of the last day of subscribing the IPO of the development unit supported Dubai index to remain stable for a third day.

“The good thing was that Emaar recovered. Emaar was looking attractive, so investors jumped the queue,” said Vrajesh Bhandari, portfolio manager at Al Mal Capital. The DFMGI closed 0.38 per cent higher at 3,477.74, after losing 4.76 per cent in the previous week.

Amanat closed 4.17 per cent higher at Dh1.25.

The Abu Dhabi Securities Exchange index closed 4,369, down 0.09 per cent.

Abu Dhabi Ship Building closed 7.14 per cent higher at Dh2.25. The National Bank of Ras Al-Khaimah closed 2.50 per cent higher at Dh4.92.

Aldar Properties closed 0.44 per cent higher at Dh2.26.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.41 per cent higher at 6,961.52. The Qatar exchange index closed 0.24 per cent lower at 7,856.99.

The Muscat MSM 30 index closed 0.33 per cent higher at 5,083.92.