Stock markets: Gulf bourses mixed, Dubai's Emaar up on strong Q2

Islamic mortgage lender Amlak Finance, the most traded stock, dropped 2.8% after tumbling 8.5% in the previous session
Stock markets: Gulf bourses mixed, Dubai's Emaar up on strong Q2
By Reuters
Mon 03 Aug 2015 10:37 AM

Gulf equity markets were mixed in early trade on Monday as the
global background remained gloomy, but positive second-quarter earnings and
expectations supported some stocks.

Dubai's index
edged down 0.5 percent with most stocks in the red. Islamic mortgage lender
Amlak Finance, the most traded stock, dropped 2.8 percent to AED2.09
after tumbling 8.5 percent in the previous session.

At AED2.09, the stock is still more than 100 percent up since it resumed trading
in June after a six-year suspension and a debt restructuring. Many analysts
believe the stock may be overvalued, and oil's fresh drop may now be
encouraging some speculators to cut their exposure.

Meanwhile Emaar
Properties, the emirate's biggest listed developer, edged up 0.4 percent after
posting a 16 percent increase in second-quarter profit to AED1.18 ($321
million). SICO Bahrain had forecast Emaar's quarterly profit would be AED817
million and Naaem brokerage had expected AED1.09 billion.

"Overall,
we find some strength in these results. The key positive is the continued
momentum in pre-sales in Dubai, despite a general softening in off-plan sales
in Dubai," NBK Capital said in a note. "In our opinion, it reflects
that well-established developers such as Emaar are likely to outperform the
broader real estate market in Dubai."

Abu Dhabi's
index edged up 0.2 percent and Aldar Properties, that emirate's top developer,
climbed 0.8 percent ahead of its own earnings announcement on Tuesday.

Qatar added 0.4
percent as Qatar Insurance jumped 3.5 percent to a new all-time high of 104.50
riyals, rising above its July peak of 102.50 riyals. The stock gained strong
momentum in May when index compiler MSCI added it to its emerging markets
benchmark.

However, the
company last month posted a 9.1 percent decline in net profit for the first
half of this year.

Elsewhere in
the Gulf, bourses in Kuwait and Oman edged down 0.5 percent each.

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