UAE stocks fell yesterday to snap a four-day winning streak, as a raft of disappointing earnings weighed on investor sentiment.
Air Arabia and Union Properties, both of which reported lower profits, led the decline in Dubai. Meanwhile in Abu Dhabi, Etisalat and Aldar Properties topped the list of losers.
The Dubai Financial Market General Index, the emirate’s benchmark equities gauge, slipped 1.2 per cent to 3,682.81, while the Abu Dhabi Securities Market General Index fell a marginal 0.1 per cent to 4,569.49.
Budget carrier Air Arabia said yesterday that it swung to a surprise fourth-quarter net loss, citing overcapacity in the regional aviation market.
The Sharjah-based carrier made a net loss of Dh38.6 million in the three months to December 31, according to Reuters calculations based on its financial statements. This compares with a profit of Dh55.9m in the corresponding period of 2015.
Shares of the airline fell 8.6 per cent to Dh1.27.
Meanwhile, Union Properties also announced yesterday a 51 per cent decline in full-year profits for 2016 to Dh211.4m, down from Dh434.6m in 2015.
The company filed preliminary results on the Dubai Financial Market showing that revenue also experienced a decline of about 23 per cent to Dh1.13 billion compared with Dh1.47bn in 2015.
Shares of the property company slipped 6.2 per cent to Dh1.06.
Before yesterday’s session, both the equity gauges of Dubai and Abu Dhabi had been rising on increased optimism over fourth-quarter earnings of some companies such as the Dubai Financial Market.
mkassem@thenational.ae
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