Major markets sag, Dubai’s DSI surges

Reuters

Major Gulf stock markets fell on Wednesday, partly because of retreating global equities and oil prices, though builder Drake & Scull surged in Dubai despite a heavy quarterly loss.
The Saudi Arabian Capital Market Authority (CMA) issued a statement before the market opened saying that listed companies would be exempt from publishing fourth-quarter financial statements because they are transitioning to the International Financial Reporting Standards style of accounting.
Real Estate developer Dar Al Arkan , which had risen in recent days after strong quarterly earnings, plunged by nearly 10 percent. Petrochemicals company Chemanol fell by 4.8 percent after jumping by its 10 percent daily limit.
The Dubai index fell 0.6 percent. But Drake & Scull, the most heavily traded stock, gained 4.1 percent after reporting a third-quarter net loss attributable to shareholders of 317.6 million dirhams versus a loss of 46.3 million dirhams a year ago.
Marie Salem, director of Capital Markets at FFA Dubai, said investors had been expecting poor third-quarter results and were looking ahead to the fourth quarter. “They believe that DSI has decided to report all losses related to its restructuring in the third quarter, so that it can have a clean fourth quarter and end the year on the positive side.”
Real estate company Ezdan Holding which had dropped 2.3 percent after Standard & Poor’s cut its credit rating by two notches into junk territory, plunged a further 6.5 percent. The stock has lost 52 percent this year.
Inflation data showed the downturn in Qatar’s real estate market deepened in October because of the sanctions. Housing and utility prices sank 5.4 percent last month from a year earlier—the biggest drop for several years.
Egypt’s index dropped 0.8 percent as Global Telecom lost 1.6 percent to 7.40 Egyptian pounds. It had jumped after VEON Holdings, its parent, said it planned a mandatory tender offer for Global shares at 7.90 pounds.