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Dubai Shares Drop Ahead of Quarterly Results; Israel Declines

July 08, 2012

Dubai Shares Drop Ahead of Quarterly Results

A visitor exits the headquarters of Dubai Islamic Bank PJSC, in Dubai. Photographer: Matilde Gattoni/Bloomberg

Dubai’s shares fell for the second time in three days before companies in the emirate start posting second-quarter results and after oil dropped following a report that showed U.S. jobs growth was short of forecasts.

Dubai Islamic Bank PJSC (DIB), the United Arab Emirates biggest bank complying with Islamic banking rules, slipped as much as 1.1 percent. Emirates NBD PJSC (EMIRATES), the U.A.E.’s largest bank, retreated the most since May 6. The DFM General Index (DFMGI) lost 0.4 percent to 1,498.16 at the 2 p.m. close in Dubai. The measure fell 12 percent in the second quarter. The Bloomberg GCC 200 Index (BGCC200) decreased 0.1 percent today while Abu Dhabi’s ADX General Index (ADSMI) rose 0.1 percent. In Israel, the TA-25 Index declined 0.6 percent.

“Traders in the U.A.E. are still hitting the bench as results will start flowing in beginning next week,” said Talal Touqan, Abu Dhabi-based head of research at Al Ramz Securities. “Many traders, who were latecomers in the first upsurge, are grabbing any opportunity to exit at break-even levels.” Dubai’s index surged 22 percent in the first three months of the year.

Companies in Saudi Arabia (SABIC) and Qatar have started announcing second-quarter results, with Dubai’s companies also scheduled to begin this month. Dubai Islamic, which has the second-heaviest weighting on Dubai’s index, may post a 26 percent decline in quarterly net income to 246 million dirhams ($67 million), according to an EFG-Hermes Holding SAE estimate. The shares fell to as low as 1.89 dirhams before closing at 1.90 dirhams.

Oil Exporters

Emirates NBD may post a 19 percent decline in second- quarter profit, according to the median estimate of three analysts compiled by Bloomberg. The shares fell 1.8 percent to 2.66 dirhams.

Oil for August delivery dropped 0.6 percent last week to $84.45 a barrel in New York after American employers added fewer workers to payrolls than forecast in June. Gulf Arab oil exporters, including the U.A.E. and Saudi Arabia, supply about a fifth of the world’s oil.

Dubai, the second-largest of seven emirates that make up the U.A.E., relies on trade, tourism and property for growth. Economic growth may reach as much as 5 percent in 2012 from 3.4 percent last year, Al Ittihad reported last month, citing the director general of the emirate’s chamber of commerce and industry, Hamad Mubarak Buamim.

Talaat Tumbles

About 89 million shares were traded in Dubai today, compared with a 12-month daily average of about 137 million.

Kuwait’s gauge added 0.2 percent, while Oman’s benchmark stock index decreased 0.3 percent. Bahrain’s measure and Saudi Arabia’s Tadawul All Share Index (SASEIDX) slipped less than 0.1 percent and Qatar’s QE Index (DSM) rose less than 0.1 percent.

In North Africa, the EGX30 Index (EGX30) fell 1 percent. Talaat Moustafa Group (TMGH) Holding decreased 7 percent, the most since June 19, to 4.4 Egyptian pounds after a panel of judges issued a recommendation that may strip Egypt’s largest publicly traded real estate developer of its biggest land asset.

In Israel, the benchmark TA-25 Index (TA-25) dropped the most since June 28. The yield on the 5.5 percent benchmark Mimshal Shiklit government bonds due January 2022 fell one basis point, or 0.01 percentage point, to 4.19 percent.

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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