Union Properties weighs on DFM
Middle East stock markets sagged again yesterday because of a mediocre economic outlook, with a shock loss at a real estate developer weighing on Dubai and Egypt dropping for a sixth straight day.
Union Properties sank 4.3 per cent to Dh0.82 after it reported a Dh2.29 billion net loss for the second quarter, although the stock came well off its intra-day low of Dh0.77. It accounted for over a third of Dubai’s trading volume.
The company said it was taking big provisions to cover past accounting errors related to its booking of a Dh503 million gain on a plot of land at Dubai’s Motor City.
The errors were discovered as a new board and senior management, appointed in May, conducted an investigation of accounting practices dating back to 2013, the company said. Its chairman later told Al Arabiya television that he did not expect to take further provisions in coming quarters.
Dubai’s stock index dropped 0.2 per cent. It was buoyed by a 0.1 per cent gain by Emaar Properties, the biggest developer, which reported a 14.4 per cent increase in second quarter profit.
But restaurant and retail investment firm Marka sank 5.1 per cent to a record low after reporting a second-quarter loss attributable to shareholders of Dh126m versus a yearago loss of Dh18.7m .
GFH Financial fell 3.3 per cent, bringing its losses over two days to 12.9 per cent. The company said it had completed the acquisition of a US$1.2bn infrastructure portfolio in Africa and the Middle East, funded by a $315m capital increase that took issued and paid-up capital to $975m – a big dilution for minority shareholders.
Abu Dhabi’s index edged down 0.2 per cent although Eshraq Properties, which had been trading at its lowest levels this year, rebounded 1.2 per cent in its heaviest volume for five weeks.
Saudi Arabia’s index declined 0.3 per cent. Insurer MedGulf, which has been falling sharply this week after reporting a big second-quarter loss, slid a further 2.9 per cent. Wafa Insurance, which earlier this month reported lower quarterly profit, fell 3.1 per cent.
In Qatar, the index dropped 0.6 per cent as Gulf Warehousing lost 1.7 per cent. Investment Holding, which tumbled 13 per cent from its IPO price.