By Shane McGinley
'Extremely hostile market conditions' led to declines, see pick-up in Q4 - CEO.
Shuaa Capital reported loss of AED37.1m ($10.10m) for the first half of 2010, compared to a loss of AED106.2m ($28.91m) in the same period last year, the Dubai-based financial services firm announced on Tuesday.
The decline in half year losses is despite the fact that revenue declined 65 percent from AED155.2m ($42.25m) in the first half of 2009 to AED93.8m ($25.53m) between January and June 2010.
The statement said “extremely hostile market conditions” contributed to the decline in revenues. “In the second quarter 2010, trading values on the Dubai Financial Market plummeted by 67 percent and the Abu Dhabi Securities Exchange by 72 percent compared to the same period last year. UAE trading values during the first half of 2010 fell by 45 percent,” the Shuaa statement said.
“Regional markets have experienced the lowest levels of trading activity since 2004 during the first half of the year and investor confidence has continued to weaken significantly,” said Majid Al Ghurair, chairman of Shuaa Capital.
“Our results are strongly influenced by investor sentiment and activity. Although Q3 is traditionally slow, we believe Q4 will see a tangible pickup in activity," Sameer Al Ansari, CEO of SHUAA Capital said optimistically.
Across the various business units, finance, brokerage, and private equity were profitable, while the investment banking and asset management sectors recorded minor losses.For all the latest UAE 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.