Property stocks drag down the DFM

Most major Middle Eastern stock markets rose modestly yesterday, while real estate stocks continued to weigh on Dubai and Egypt’s blue-chip index reflected emerging market worries.

The Dubai index closed 0.8 per cent lower, pressured by real estate and bank stocks. All six real estate stocks fell while Emirates NBD, the biggest lender, was the main drag on the index, falling 2.1 per cent.

Damac Properties fell 2.4 per cent after saying it expects Dubai’s real estate market to face another few quarters of “soft market conditions” before starting to rebound from late 2019.

Construction company Drake & Scull closed nearly 1 per cent higher, but off the day’s highs in heavy trade ahead of its shareholder meeting tomorrow, which is expected to discuss ways to strengthen the company.

Ajman Bank was up 2.0 per cent as yesterday was the last trading date for the company’s shareholders to be entitled to its rights issue.

The Saudi Arabian index inched 0.3 per cent higher, helped by banks and petrochemicals.

Alujain Corp plunged 5.5 per cent in heavy trade after it said a fire broke out at its affiliate National Petrochemical Industrial’s plant on Tuesday, halting production.

The fire, which was brought under control, killed one worker and injured 11 in Yanbu province on the Red Sea, a spokesman of the Royal Commission for Jubail and Yanbu told Al Ekhbariya TV .

Saudi British Bank and Alawwal Bank were suspended from trading pending news, according to an announcement on the stock exchange.

The banks agreed to a $5 billion merger in May to create the kingdom’s third-biggest lender, but the agreement is still non-binding and subject to a number of conditions.

Abu Dhabi’s index rose 0.2 percent, helped by a nearly 2 per cent gain in RAK Properties and a 0.4 per cent rise in First Abu Dhabi Bank.

The Egyptian blue-chip index, dampened by continued weakness in emerging markets generally, fell 0.5 per cent as all but six of its 30 stocks dropped. Eastern Co was the biggest drag, slipping 5.9 per cent.

Qalaa Holdings rose 2.5 per cent to 3.31 Egyptian pounds after brokerage Naeem placed a ‘buy’ rating on the stock with a target price of 4.16 pounds.