The index fell 1.4 percent to 1,507 points in its largest
single-day decline since June 29.
Emaar and DFM shares fell 3.6 percent and 3.3 percent
respectively.
Emaar Properties, the Arab world's largest developer,
missed analysts' forecasts with a second-quarter net profit of 802 million
dirhams which it reported on Thursday after the market close.
DFM's quarterly profit fell 80 percent as declining
trading volumes weighed on earnings.
"The best way to describe Emaar's numbers is 'light'
- they are not necessarily bad," said Ali Khan, managing director and head
of brokerage at Arqaam Capital.
"DFM was a bigger miss, but one shouldn't be
entirely surprised given what has happened to volumes, which are a key driver
for earnings. The risk is to the downside and I would expect DFM and Emaar to
head lower in the short term," he said.
Some analysts expect earnings from Emaar, builder of the
world's tallest tower, the Burj Khalifa, to improve in the second half of this
year.
"The company is heading toward a strong second half
of the year with remaining units in Burj Khalifa (76 percent of total) slated
for hand over, more deliveries in Dubai Marina, recurring and growing
performance of hospitality and mall divisions and a growing contribution from
international operations," said Shuaa Capital in a note to clients.
In Abu Dhabi, Waha Capital gained 1.5 percent, despite
reporting a 90-percent decline in second-quarter net profit.
"The headline (profit) number is quite weak, but the
stock has rallied on the back of its bond issue, which is significant
fundraising for the company," said Ali Khan.
A unit of Waha Capital has announced a 10-year bond
expected to raise about $1.5 billion.
Other Middle East markets largely continue trading
sideways, as global markets edged higher on Friday but regional corporate
earnings failing to inspire investors.
Oman's bourse gained 0.8 percent to 6,167 points,
tracking gains in international markets.
Raysut Cement extended its losses, falling 0.7 percent to
a fresh 13-month low after recently saying it had cut its cement sales prices.
"The price reduction will have an impact on 2H
(second-half) 2010 revenue and earnings, in line with our expectations,"
said brokerage EFG Hermes in a research note.
Kuwait's index ended 0.5 percent higher at 6,616 points
and Qatar's benchmark rose 0.3 percent to 6,972 points, mostly as banks gained.
Investors in Saudi Arabia cashed in some recent gains,
sending the Tadawul All-Share Index (TASI) 0.2 percent lower to 6,175.03
points.
The sector activity for the day was negative with 11 out
of 15 sectors closing with losses ranging from 0.07 percent by Insurance sector
to 0.69 percent by Hotel & Tourism sector. On the other hand the gains were
witnessed only in four sectors ranging from 0.25 percent by the
Telecommunication & Information Technology to 0.93 percent by the Real
Estate Development sector with 0.03 percent. The overall market breadth for the
day was also positive with 49 advancers against 75 decliners giving it an AD
ratio of 0.65, the Financial Transaction House (FTH) said in its daily market
commentary.
Egypt's benchmark was the region's strongest performer,
advancing 1.4 percent to 6,112 points.
Traders expect regional markets to continue moving
sideways in the next couple of days, although individual stocks reporting
second-quarter results may grab the spotlight. On Monday, bank Emirates NBD
will report its quarterly earnings.
- With input from agencies
