Dubai: Shares in Dubai and Abu Dhabi headed higher in early trading as strong first-quarter earnings maintained continued momentum in the markets, while Qatar Stock Exchange retreated after undergoing a large sell-off.
The Dubai Financial Market rose 0.4 per cent at 2,616 points, with Air Arabia rising 2 per cent after the recent announcement of plans to resume flights to a number of destinations. It was a sign that the aviation sector was opening up as parts of the world began to recover from the pandemic against the backdrop of the vaccine launch, although some other parts of the world slid in new, more intense waves of the virus.
Real estate stocks rose as strong earnings maintained the continuing momentum of the sector, with prices for Emaar Properties, Union Properties and Deyaar Development all higher.
Momentum generated by the results
Dubai Investments shares rose 1.3 percent after turning into a profit maker in the first quarter. The company announced profits of about 124 million dirhams, compared to 6.8 million dirhams, which recorded losses for the same period of the previous year. Total income jumped more than 37% to 637.6 million dirhams on the back of strong performance led by the manufacturing, services and investment sectors. Real estate held up.
The investment firm’s net profit numbers nearly halved last year after being hit by the health crisis, but first-quarter numbers indicate a clear recovery from negative growth.
Abu Dhabi Securities Exchange rose 0.1 percent at 6,055 points, with the rise in all of First Abu Dhabi Bank, ADNOC Distribution and Abu Dhabi National Energy. But the biggest single push came from Etisalat, which jumped 0.6 per cent after posting higher first-quarter earnings late last week. Dana Gas rose one day ahead of the dividend as Sunday is the last day to claim the latest dividend.
It goes down
The Qatar Stock Exchange fell 0.4 percent at 10861 points, affected by losses in various sectors led by Qatar Insurance Company and Qatar’s heavyweight industries. Telecom companies Ooredoo Qatar and Mazaya Real Estate Development both declined after poor performance in the first quarter.