Corporate earnings, news prop UAE; Saudi, Egypt down

Reuters

Corporate earnings and other news from companies in Dubai helped that market rise on Tuesday, while Abu Dhabi was supported by earnings at Union National Bank and an arbitration judgement in favour of Dana Gas.
Dubai’s index rose 0.4 percent as Drake & Scull climbed 6.9 percent after slumping by as much as 8 percent in the opening minutes of trade.
The builder reported a net loss in the fourth quarter of 490 million dirhams ($133.5 million) versus a profit of 14.7 million dirhams in the prior-year period.
But after initially reacting to that news, investors focused on the company’s statement that as part of a turnaround and capital restructuring plan, it was considering proposing a rights issue of 500 million dirhams in equity to a strategic investor, and that it had secured a binding offer to participate from a local investment firm.
“The initial drop in price triggered many buy orders – traders were seeking to buy the stock on any price dip,” said a Dubai-based broker. “Also, investors are confident in the long- term outlook for the company.”
DXB Entertainments rose 2.8 percent after the company reported revenue of 75.9 million dirhams in its first year of operating amusement parks. But the company made a net loss for 2016 of 485 million dirhams against a loss of 111 million dirhams in 2015.
Shuaa Capital jumped 5.8 percent after it made a narrower quarterly net loss attributable to equity holders of 18.9 million dirhams, versus a loss of 161.8 million dirhams in the prior-year period. On Monday chairman Jassim Alseddiqi told Reuters that Shuaa was working on a bolt-on acquisition of a financial services company based in the United Arab Emirates as part of the investment bank’s growth plans.
Builder Arabtec, however, slumped by its 10 percent daily limit for a second consecutive session after it reported on Monday a massive net loss for the fourth quarter.
Abu Dhabi’s index added 0.2 percent on the back of a 6.4 percent jump in shares of Dana Gas, which said a consortium including it was awarded $121 million by a London arbitration tribunal in its dispute with the Kurdistan Regional Government. The court also dismissed the government’s counter-claims.
Union National Bank climbed 4.1 percent after reporting a 29 percent year-on-year rise in quarterly net profit. The bank’s board proposed a 20 percent cash dividend for 2016, the same as for 2015.
Kuwait’s index rose 1.4 percent to 6,751 points in heavy trade, heading back towards technical resistance at its mid-January peak of 6,980 points. Ten of the top 15 largest companies by market value advanced with telecommunications operator Zain adding 3.2 percent.
SAUDI, EGYPT
Saudi Arabia’s index fell 0.4 percent in thin trade. Banking shares were the main drag with 10 of the 12 listed banks dropping; Bank Aljazira was the worst performer, retreating 1.8 percent.
In Cairo, the main index fell 1.9 percent to 12,504 points on profit-booking. The index closed below technical support at its early February low of 12,578 points; a second straight day of losses would confirm a break, triggering a double top formed by the highs of January and February which would point down to around 11,500 points. Qatar’s stock market was closed for a public holiday.