DFM dips, Aramex up despite earnings miss

Strong performances by property developers lifted Qatar's bourse on Tuesday, while Egypt rebounded after a pull-back prompted by violence in Sinai. Other markets in the region consolidated after mixed third-quarter earnings.

Dubai's index was nearly flat. Shares in logistics firm Aramex rose 0.3 per cent after it reported a 16 per cent rise in third-quarter net profit to Dh69.5 million ($18.95 million) on Monday.

Although the figure was lower than the average estimate of analysts polled by Reuters, who had expected Dh74.8 million, some analysts called it impressive. NBK Capital said in a note it was pleased with the numbers and maintained a "buy" recommendation on the stock.

Meanwhile, bourse operator Dubai Financial Market  fell 1.1 per cent after reporting an 85 per cent rise in third-quarter net profit, which was broadly in line with the estimate of Global Investment House.

Abu Dhabi's benchmark inched up 0.1 per cent on the back of First Gulf Bank, which rose 1.1 per cent after beating estimates with a 20 percent increase in third-quarter net profit. The bank made Dh1.43 billion ($388 million) against a forecast of Dh1.35 billion.

Qatar's bourse was the strongest in the region, adding 1.2 per cent. Property developer Ezdan Holding was the main support, surging 8.1 per cent. The company posted a 41 per cent jump in nine-month profit this week.

Barwa Real Estate rose 2.0 per cent after reporting a 44 per cent jump in nine-month profit on Tuesday.

But shares in Ooredoo fell 1.0 per cent after the telecommunications operator missed estimates by a wide margin with an 11 per cent rise in third-quarter net profit. Ooredoo made a profit of 375 million riyals ($103 million) while analysts had on average expected 802 million riyals.

Saudi Arabia, Egypt

Saudi Arabia's index edged down 0.3 per cent after a series of mixed earnings announcements.

Shares in Dallah Healthcare tumbled 6.0 per cent after it reported a nearly flat third-quarter profit, missing the estimates of Arqaam Capital and Albilad Capital, which had forecast increases of 10 and 42 per cent respectively.

Meanwhile, property developer Dar Al Arkan edged up 0.4 per cent despite reporting a 51 per cent fall in third-quarter net income and missing analysts' forecasts.

"We continue to view Dar Al Arkan as a value player with about 32 million square metres of land bank waiting to be either sold at a good value, or developed by the company," Cairo-based Naeem Brokerage said in a note, maintaining a "hold" recommendation.

"Dar Al Arkan stands to benefit from the growing real estate market in Saudi Arabia, driven by favourable demographics, government support to real estate and infrastructure, an undersupplied property market, and, most importantly, introduction of the new mortgage law."

Saudi Telecom (STC), the Gulf's No.1 telecommunications operator by market value, was the main support for the benchmark. The stock jumped 3.4 per cent after the company reported flat third-quarter profit, which was better than what analysts had predicted.

Egypt's market rose 1.1 per cent, ending a slide that analysts attributed to attacks on security personnel in the Sinai Peninsula last Friday, which killed 33 people in one of the worst episodes of anti-state violence since President Mohamed Mursi was overthrown last year.

Heavyweight property developers Talaat Moustafa Group  and Sodic were the main supports, surging 5.9 and 10.0 per cent respectively.

In an update of its regional economic outlook released on Monday, the International Monetary Fund cut the country's gross domestic product growth forecast for 2015 to 3.5 per cent from 4.1 per cent while raising the inflation forecast to 13.4 per cent from 11.5 per cent.

Analysts believe faster consumer price growth would be a boon for real estate developers, as Egyptians will use property investments as a hedge against inflation.

Tuesday’s highlights

DUBAI
The index added 0.02 per cent to 4,626 points.

ABU DHABI
The index inched up 0.1 per cent to 4,898 points.

SAUDI ARABIA
The index slipped 0.3 per cent to 10,164 points.

QATAR
The index rose 1.2 per cent to 13,648 points.

EGYPT
The index gained 1.1 per cent to 8,745 points.

KUWAIT
 The index edged up 0.3 per cent to 7,337 points.

OMAN
The index fell 0.6 per cent to 6,981 points.

BAHRAIN
The index edged down 0.1 per cent to 1,437 points.

 

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