Dubai stocks gain strength; Abu Dhabi index dips



REUTERS

Published — Wednesday 20 February 2013

Last update 20 February 2013 12:26 am

| نسخة PDF Print News | A A

DUBAI: Dubai telecom operator du made its largest one-day gain in 10 months, surging to a four-year high and boosting the broader index after it posted quarterly results that beat analysts’ estimates.
Most regional markets in the Gulf Arab region declined.
Shares in du jumped 11.7 percent to AED 4.12 in its biggest gain since April 2012.
Du’s fourth-quarter profit more than doubled to AED 994 million ($ 270.6 million) as it wrote back tax provisions.
UAE telecom operators are taxed via royalties under license agreements with the federal government. The latter announced a new formula in December that includes a levy on revenues as well as profits. Du had provisioned to pay 50 percent of its profit in royalty fees through the year, but the new formula means it pays less tax as a percentage of profit than 2011, enabling it to write back some of the provisions it set aside in the first nine months of 2012. The firm also proposed a cash dividend of AED 0.3 per share.
“The surprise was on earnings as well as dividend yield, which at 8 percent is very attractive,” said Ali Adou, portfolio manager at The National Investor. “The royalty fee restructuring will be negative for du after three years, but for the time being, the stock looks very attractive.”
Dubai’s measure ose 1.7 percent to its highest close since November 2009. It has risen 16 percent year-to-date.
Stocks have rebounded following tentative signs of recovery in Dubai’s property sector, but the share index remains about 70 percent below a 2008 peak. Abu Dhabi’s index eased 0.2 percent, down from Monday’s 39-month high.
Elsewhere, Egypt’s index fell 1.2 percent to its lowest level in February as political uncertainty spurred foreign investors to cut risk exposure.
Egypt’s constitutional court earlier rejected five articles of a draft election law and sent the text back to the country’s temporary legislature for redrafting in a ruling that may delay a parliamentary poll due in April. Investors are worried about the economic uncertainty caused by the delay, including a $ 4.8 billion loan from the International Monetary fund, seen as crucial to support the country’s battered economy and to stabilize a currency crisis.

“The law debate makes it very difficult to expect when the elections will be held,” said Ahmed Kheir El Din, a Cairo-based trader.
“We don’t know what will happen with the IMF (International Monetary Fund) loan or the appointment of a new government.”
Non-Arab foreign were net sellers, while Arab were net buyers, bourse data shows.
Commercial International Bank is the main drag, falling 3.2 percent. Orascom Telecom and Media sheds 1.4 percent and EFG-Hermes dips 2.8 percent.

What's happening around Saudi Arabia

Custodian of the Two Holy Mosques King Salman prays inside the historic Quba Mosque in Madinah. The king was accompanied by Prince Muqrin, Sheikh Abdul Rahman Al-Sudais, head of the Presidency of the Two Holy Mosques and Prince Sultan bin Salman, ch...
JEDDAH: Shop rentals at certain malls have risen by 200 percent, with this cost likely to be passed on to the consumer, the Jeddah Chamber of Commerce and Industry (JCCI) said here recently. Muhammad Al-Shehri, chairman of the JCCI’s textiles and gar...
JEDDAH: People with special needs can now visit a park that has dedicated services for them.Jeddah Mayor Hani Abu Ras opened Al-Erada Park in Al-Salama district on Prince Sultan Street on Thursday.“The Kingdom provides special care for people with di...
JEDDAH: Is involvement in social media the right thing or wrong, particularly in the month of Ramadan? There is a difference of opinion with some arguing that it eats into the time that should be spent praying while some backing it for its religious...
RIYADH: The Argentine government has thanked the Kingdom for previously hosting its Umrah pilgrims for free.“They were part of a group invited by then Custodian of the Two Holy Mosques King Abdullah,” said Ambassador Jaime Sergio Cerda on Thursday.“T...
RIYADH: The Ministry of Education’s counseling department has approved the Rifq Program for the physical and psychological well-being of students.Nabil Mohammad Al-Budair, director of counseling for boys, said the program aims to reduce violence in p...
RIYADH: Sales of fireworks at public markets and main roads in Riyadh have increased during Ramadan, despite the Ministry of Commerce and Industry announcing a SR5,000 reward for anyone providing information about warehouses storing these dangerous i...
RIYADH: The General Organization for Social Insurance (GOSI) has reported that there were 69,241 work-related accidents in 2014, with expatriates making up 65,509 or 94.6 percent and Saudis 3,732.The accidents were in nine sectors with building and c...
JEDDAH: The Health Ministry’s expenditures over the past five years increased from SR29.29 billion to SR53.73 billion, an increase of about 83 percent.According to a study detailing the ministry’s expenditures between 2008 and 2012 issued by the mini...
RIYADH: Five people from the southern Indian state of Kerala were killed in a road accident at Salwa near Dammam in the Eastern Province early Thursday morning.Manoj Kumar, community welfare attache at the Indian Embassy, told Arab News that the vict...
MAKKAH: The government has deployed eight helicopters over Makkah to track the movement of vehicles and people, and assist in security tasks and medical evacuations.Maj. Gen. Mohammad Al-Harbi, commander of the Interior Ministry’s aviation security d...
JAZAN: A Yemeni woman (A.M.) has once again experienced freedom and a renewed sense of hope in life after reuniting with her family last week on her release from Jazan General Prison, where she spent six years on charges of murder of a citizen in the...
RIYADH: A delegation from the Kingdom recently visited the United Arab Emirates (UAE) to explore that country’s successful experience in tourism, in a bid to further develop the sector. Saudi Arabia has been making all-out efforts to promote tourism,...
RIYADH: The Justice Ministry has appointed 1,145 candidates for jobs in the judiciary and urged them to complete the requirements for their final appointment. The candidates in the sixth and fourth ranks are requested to fulfill employment prerequisi...
JEDDAH: Four thousand Djibouti workers are expected to arrive in the Kingdom over the next few months following the labor pact signed between the two countries last month.Speaking to a local publication recently, Djibouti Ambassador Diaa Eddin Saeed...

Stay Connected

Facebook