Profits fail to excite Dubai index

Several strong earnings reports were not enough to lift the Dubai Financial Market (DFM) yesterday as it ended lower for the sixth session in nine. Shares in the telecommunications operator du rose 1 per cent to Dh2.03 yesterday as profits more than doubled in the second quarter. Tabreed also reported a sharp increase in profit. The DFM General Index dropped 0.3 per cent to 1,496.12. The FTSE NASDAQ Dubai UAE 20 Index moved up 0.1 per cent to 1,575.61. NASDAQ Dubai said the value of equities traded rose by 9 per cent in the four weeks from July 11 following the outsourcing of its operations to the DFM.

The value reached US$51.3 million from $47m in the same period last year. Nasdaq Dubai outsourced all its settlement, trading, custodial and clearing activities to the DFM recently. EFG-Hermes was cited as one of the most active brokers since the consolidation. "We have started to see more volumes not just from us but through the market overall. It may be as a result of solid numbers from listed stocks on NASDAQ, and the consolidation," said Alfred Fayek, the managing director of MENA equity sales at EFG-Hermes based in Dubai. "The market will need a couple of months to see if it is indeed a result of the consolidation itself."

The Abu Dhabi Securities Exchange General Index dipped 0.1 per cent to 2,508.62. Aldar Properties reversed recent losses with a 2.4 per cent gain to Dh2.15. Kuwait's measure added 0.1 per cent and Bahrain's index gained 0.5 per cent. Oman's bourse remained largely unchanged and Qatar's index added 0.1 per cent. The Saudi index declined 0.85 per cent. [e-mail]