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Reuters
Shares of the first family-owned business to list in Qatar slumped on Monday as they began trading, while weak earnings at several companies in Dubai weighed on the stock index there. Egypt fell for a fifth straight day.
Qatari conglomerate Investment Holding Group tumbled 13 percent from its initial public offer price to 8.70 riyals. Trading volume was about 3.3 million shares, roughly one-third of the total volume in Doha on Monday. IHG had offered 49.8 million shares, or 60 percent of its share capital, at 10.0 riyals per share plus a 0.1 riyal fee in its IPO during January, making the value of the listing about $138 million.
It is the third flotation in Qatar since 2010; many companies in Qatar and the Gulf are family businesses but so far few have been willing to list, partly because families fear losing control. The Qatar stock index edged down 0.2 percent. Egypt’s index fell 1.1 percent to 13,135 points, with its technical outlook continuing to deteriorate; it fell below its July low of 13,261 points as well as support on its 100-day average, now at 13,167 points.
A head & shoulders pattern formed by the highs and lows since June, and triggered this week, points down to about 12,650 points. Dubai’s index lost 0.8 percent as DAMAC Properties dropped 2.0 percent after reporting a second-quarter net profit of 701.3 million dirhams ($190.9 million), down 20.9 percent from a year ago. Builder Drake & Scull declined 3.2 percent after it made a second-quarter net attributable loss of 182.7 million dirhams ($49.8 million), widely missing Arqaam Capital’s estimate of a loss of 48 million and only slightly narrower than the year-ago loss of 207.6mn dirhams.
“Fundamentals are in decent shape, and it has a good cash position – what might have driven the price down is disappointment because it did not announce a cash dividend,” said one trader. In Abu Dhabi, Waha Capital fell 2.2 percent after the investment firm reported its second-quarter net attributable profit fell 26.5 percent to 95.6 million dirhams. Dana Gas lost 4.8 percent ahead of its quarterly results, expected to be announced on Tuesday. The Abu Dhabi index fell 0.5 percent.
The Saudi index edged down 0.3 percent as half of the 12 listed banks fell; the largest by market value, Al Rajhi , fell 0.2 percent. Telecommunications firm Etihad Etisalat (Mobily), edged up 0.3 percent, outperforming its rivals.