Gulf News

Short-term weakness seen in DXB Entertainm­ents shares

The shares which traded at Dh0.439 yesterday have shed 30% of value so far this year,

- BY SIDDESH SURESH MAYENKAR Senior Reporter

DXB Entertainm­ents may witness weakness in the short-term, but should be seen as a long-term play, according to analysts.

DXB Entertainm­ents reported a net loss of Dh1.11 billion in 2017 compared with a Dh485 million loss a year earlier, but the company posted a 45 per cent rise in visitor numbers with 851,000 coming in during the first quarter of 2018.

“DXBE stock has gone down a lot, however it is difficult to be a buyer even at current levels. We believe the company will continue to make losses in the foreseeabl­e future,” said a fund manager who did not wish to be named.

Shares of DXB Entertainm­ents, which traded at Dh0.439 yesterday, have shed 30 per cent of their value so far this year, compared to a 9 per cent fall in the Dubai index. The stock fell 51 per cent last year. The monthly average traded volume stood at 300 million shares so far this year, which is in line with last year.

The tone is bearish in DXB Entertainm­ents, said Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities in a note. FABS had a technical sell call on the stock at Dh0.49 for a target of Dh0.35 in mid-April.

“We would rather wait for the strategy from the new management to play out, of focusing on GCC residents, promoting the annual pass and marketing internatio­nally through tie-ups with airlines, hotels and tour operators,” the fund manager said.

Investors should consider DXB Entertainm­ents as a long-term play. “The company announced solid first quarter numbers due to seasonalit­y, however the second and third quarters will remain a challenge. We believe the company should diversify their revenue stream to generate returns even during summertime to ensure cash flow balance,” said Tariq Qaqish, managing director — asset management with Menacorp.

net loss reported by DXB Entertainm­ents in 2017

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