We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Sun 27 Jul 2014 11:16 AM

Font Size

- Aa +

Gulf markets set to consolidate before Eid

Bourses in Saudi Arabia and Kuwait already closed

Gulf markets set to consolidate before Eid

Markets in the region look likely to consolidate in quiet trade on Sunday ahead of a long break for Eid al Fitr holidays, with bourses in Saudi Arabia and Kuwait already closed and the United Arab Emirates set to close as soon as on Monday.

Dubai builder Arabtec may come under pressure after its second-quarter profit missed analysts' estimates. The company earned AED103 million ($28.1 million) in the quarter, while analysts polled by Reuters had on average forecast AED111 million.

Another concern for investors is whether Arabtec's former chief executive Hasan Ismaik, who abruptly resigned last month, may sell more shares on the market. Ismaik sold about $4 million worth of Arabtec shares last week, cutting his stake to 28.77 percent from 28.85 percent.

Arabtec dropped 19.2 percent last week after Abu Dhabi state fund Aabar Investments, the firm's second-largest shareholder, did not confirm a report which said Aabar was in talks to increase its stake.

Another Dubai firm, shipper Aramex, reported a 12 percent rise in second-quarter net profit late on Thursday, which was in line with analyst estimates, despite a one-off cost related to its acquisition of courier firm Australian Mail Call.

During this earnings reporting season, investors in Dubai have often followed a "buy the rumour, sell the fact" pattern and as a resullt, a number of stocks have dipped even after beating estimates.

The global backdrop is generally negative after US stocks fell on disappointing earnings on Friday and signs emerged that tensions between the West and Russia were starting to hurt economic confidence in Germany.

Arabian Business: why we're going behind a paywall

For all the latest market news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.