Dubai index capped by quarterly earnings, IHG to list in Qatar



Mon, 14 Aug 2017 - 11:05 GMT


Mon, 14 Aug 2017 - 11:05 GMT

Stocks - Wikimedia Commons

Stocks - Wikimedia Commons

DUBAI - 14 Aug 2017: Weak quarterly earnings from some of the most active shares in Dubai may keep that index capped on Monday while most other regional equity markets may be firm as international markets regain some positive momentum.

Builder Drake & Scull reported a second-quarter net loss attributable to shareholders of 182.7 million dirhams ($49.8 million), widely missing Arqaam Capital's estimate of a loss of 48 million dirhams and only slightly narrower than last year's loss of 207.6 million dirhams.

DSI is in a capital restructuring programme which it said was set to be completed by the end of the next quarter. The company also said it had terminated the services of its chief executive, Wael Allan; it did not name a new CEO.

DAMAC Properties may also see some selling after reporting a second-quarter net profit of 701.3 million dirhams, down 20.9 percent.

But the Dubai-listed shares of Bahrain's GFH Financial could get a boost after it made a second-quarter net profit of $30.2 million, a leap from last year's $5.5 million.

In Saudi Arabia, the second largest telecommunications company, Etihad Etisalat (Mobily), may rise after it announced it had signed an agreement with Nokia, Huwawei and Ericsson to modernise its network.

Mobily expects the agreements to cost about 2.4 billion riyals ($640 million) over the next three years and said funding would come from the company's cash flow and available facilities.

Family-owned Qatari conglomerate Investment Holding Group IPO-INVH.QA begins trading on Monday. IHG offered 49.8 million shares, or 60 percent of its share capital, at a price of 10.1 riyal per share in its initial public offer during January, making the value of the IPO about $138 million.

Excluding IHG, the market has seen only two new listings since 2010.

MSCI's broadest index of Asia-Pacific shares outside Japan is up 0.7 percent.



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