UAE bourses are likely to see increased activity on Tuesday as first-quarter earnings trickle in and Dubai’s builder Arabtec wins new contracts, while global concerns may weigh.
An Arabtec Holdings unit has won three contracts in Qatar and the UAE worth US$137.22 million, the Dubai builder said on Monday.
Arabtec has surged 113.8 percent year-to-date amid a purchase of 10.45 percent stake by Abu Dhabi’s fund Aabar. Investors are expecting the builder to win more contracts in Abu Dhabi.
“Arabtec has run up a lot during the stake purchase and expectations that Aabar awards it contracts till the point where the valuation is justified has began,” says Amer Khan, fund manager, Shuaa Asset Management. “But they would need to be awarded almost double their current backlog to justify the current price.”
Bellwether Emaar Properties’ shares may be weighed after the developer approved a 10 percent cash dividend. The stock had rallied this week in hopes the dividend would be bumped to 15 percent, market participants said.
First Gulf Bank, Abu Dhabi’s second-largest bank by market capitalisation, may see some selling pressure after its net profit fell short of estimates despite a 7-percent rise.
Etisalat, the Gulf Arab region’s number two telecom operator, reported flat quarterly profit that beat estimates, but is unlikely to see significant share price move, with only UAE nationals allowed to trade the stock.
Elsewhere, Qatar National Bank (QNB) is increasing its stake in Iraq’s Mansour Bank to 51 percent from 23 percent as it seeks further opportunities to expand in the region.
Qatar Telecom has sent requests for proposals to international lenders for a US$2bn refinancing loan that will mark its return to the market after a two-year gap.
In Saudi Arabia, the bourse slipped for a second session on Tuesday as it consolidates gains from a surge earlier this year and is seen extended the decline.
“Now that earnings season has ended in Saudi Arabia, it will take the negative lead from global sentiment, which may push down regional markets today,” Khan says.
Asian shares inched up on Tuesday but gains were limited as political uncertainty and disappointing data in Europe raised fears the euro zone could struggle to push through austerity measures and may stay in recession until late in the year.
Brent crude was steady under US$119 a barrel.
Follow us on
