UAE markets 28 Jan 2008

UAE market news & discussions for 28 January 2008 European and Asian stockmarkets took a dive today, probably prompting the boys with the red paint to splash a bit around the UAE markets as the DFM got a 4% hammering and the ADSM dropped over 1%. DPW shares were the only ones traded on DIFX today, and fell 4.9% to close at the day's low of $0.97. Sentiment regarding dropping or revising the dollar peg with Gulf currencies, seems to be changing with the HSBC chief saying the GCC should keep it. The complicated Nasdaq takeover of the Scandanavian OMX is expected to be cleared by the Swedish finance minister on Thursday. Borse Dubai will buy the OMX shares then give them to Nasdaq in exchange for a stake in Nasdaq, resulting in the renaming of the DIFX as the Nasdaq-DIFX. Sounds like something concocted by the Swedish Chef. In the world of large public companies, behemoths like Gazprom of Russia and ExxonMobil dwarf Emaar and Etisalat, the 2 biggest UAE companies by market capitalization. In a Bloomberg report on oil companies, almost all analysts they surveyed gave buy ratings to Gazprom, and Petrobras of Brazil, while about half had buy ratings on ExxonMobil, Chevron, and Shell. Dubai's non-oil exports for 2007 rose 43% to just under AED 170 billion, according to figures released by the Dubai Chamber of Commerce and Industry. Which is about what you'd need to buy both Etisalat and Emaar outright. Emaar Properties said 2008 profits were expected to be relatively unchanged from 2007, despite expected cashflows starting to come in later this year from Dubai Mall, Dubai Marina Mall, due to increasing costs. EFG Hermes revised their fair value from AED 20.40 to 18.50 per share. Emaar shares plummeted almost 6% today to 12.30, but so did many other stocks. Union Properties FV was upgraded to 6.10 dhs in an EFG Hermes report update after better than expected revenues and earnings. Shares fell 2% to 4.50 dhs today. Results update from yesterday and today Abu Dhabi Islamic Bank released profit figures of AED 771m, a 35% increase on 2006, helped along by a Investment Income almost tripling to AED 221m. PE of about 15 is similar to market average. Arab Bank (of Jordan) 2007 FY profit was up 24% to AED 2.8 bn. Arabbank was approved for listing on the ADSM over a year ago, but listing date is unknown. Bank of Sharjah 2007 FY profit up 26% to 404 million. With a 2007 PE of 10, shares look a bit cheaper than the average bank stock. BOS shares fell 3.3% today to 3.25. Etisalat 2007 FY profit up 25% to AED 7.3 billion but missed forecasts. Shares fell 2.2% to 23.95 giving it a 2007 PE of about 16.4 which looks quite reasonable in this market for a company with solid growth. Fujairah Cement Industries profit for 2007 grew 15% to AED 173m from 2006, but revenues grew 45% indicating that costs might be running away on them. Shares still look cheap at a PE of 7.3. Share price fell by less than 1% to 4.53 today. Gulf General Investment Company 2007 FY profits rose 35% to AED 551m. The market is impressed, shares have risen over 18% in the past 4 trading days, including 5% today while the DFM fell 4%. However, due to the capital increase in 2007, the Earnings Per Share (EPS) has barely changed from AED 1.01 to 1.02. Gulfa Mineral Water profits were probably AED 2.3 million (disclosure not clear). Gulfa shares traded twice this month, first trading since they listed in April last year. With a PE of about 24, they don't look particularly attractive anyway. Invest Bank 2007 profits rose an impressive 65% to AED 290 million but revenue (or interest income) rose only 5%. Property sales and income from investments accounted for most of the increase. We're impressed with INVESTB for making an obvious effort to try and produce a comprehensive report for shareholders. It wasn't easy to follow but it's the thought that counts right? Their shares haven't traded this week but at last week's price of 3.70, their PE of 12.8 looks cheaper than average. Little growth in operating profit makes their shares less attractive at current prices though. National Bank of Fujairah profits were up 36% to AED 324 million. Their press release said profits "soared". Yesterday their shares plummeted 10% to 4.71, and today no one was interested in trading NBF shares. A PE of about 16 is similar to market average. National Bank of Ras Al Khaimah profits for 2007 rose 55% to just over 400 million. Their management report is the first one we've seen that actually appears to have had some thought put into it, instead of just firing out a page of pressreleasespeak. RAKBANK were also given a positive rating by a TNI report this week. As usual though, their shares didn't trade today. National General Insurance profit of AED 110m for 2007 was up a rather meaningless 46,000% since they made almost nothing last year. Sharjah Insurance Company's loss of AED 72 million last year was turned around into a profit of AED 113 million for 2007. SICO shares weren't traded today. Umm Al Quwain Cement Company 2007 profits were up to AED 107m from a loss of 12 million last year, but Operating Profit fell this year despite increased revenues, which indicates increasing costs yet again, and a continued reliance on share market investments for their earnings figures. A PE of about 8.5 looks cheap but doesn't mean that much when earnings are so volatile. Union Insurance Company recovered from last year's loss of AED 42 million last year to show a profit of AED 82 million for 2007. Shares fell 1% to 2.92 in thin trading. Results / Dividend proposals expected Abu Dhabi Ship Building board meets 03 February 2008 afternoon. Dana Gas board meets 30 January 2008 Dubai Islamic Bank board 20 January 2008 RAK Cement Company board meets 30 January 2008 RAK National Insurance board meets tomorrow (29 Jan 2008) at lunchtime. Salam International Investments board meeting 10 February 2008 Sorouh Real Estate board meets today so results may be available later, or tomorrow. Umm Al Quwain Cement Company board meets tomorrow evening (29 Jan 2008) Union Cement Company board meets 02 February 2008 Recently updated or new topics on DubaiShareTalk

• 28 January 2008 UAE stocks and financial news
• What to trade?
• Whats happening to the market
• Air Arabia correction due? Jan 2008
• ARABBANK 2007 FY profit +24% to AED 2.8 bn - R 27 Jan 08
• Bank mergers in the UAE 2007
• DANA AED 1.8 bn investment Egypt, Iraq, maybe Algeria - R 28 Jan 08
• Dubai Holding subsidiary IPOs coming - EB 27 Jan 08
• ETISALAT 2007 FY profit +25% to Dh7.3 bn misses forecasts 28 Jan 08
• EMAAR revised report EFG Hermes FV drops - 27 Jan 08
• EMAAR could drive the DFMGI to new highs
• UAE IPOs worth AED 3.5 bn coming R 27 Jan 08
• UNB FGB merger? Denied by UNB - R 27 Jan 08
• UPP report EFG Hermes FV upgrade to 6.10 dhs 28 Jan 08
• Tamweel in 2008 18 Dec 07
• 27 January 2008 financial and business news for the UAE

More UAE stock market news and discussions...

best stock rises symbol price change OEIHC 39.90 +3.25 +8.9% GGICO 11.00 +0.50 +4.8% RAKCEC 4.66 +0.20 +4.5% GCEM 7.05 +0.30 +4.4% BILDCO 4.00 +0.17 +4.4%

worst stock falls symbol price change ALMADINA 9.20 -0.70 -7.1% DU 5.51 -0.41 -6.9% DFM 5.05 -0.37 -6.8% IAIC 3.36 -0.22 -6.1% TABREED 3.05 -0.19 -5.9%

top volume symbol value (AED) price EMAAR 668,249,668 12.30 DFM 458,925,385 5.05 DANA 273,318,627 2.40 ALDAR 167,360,942 10.30 DEYAAR 164,635,194 2.50

Dubai Financial Market

The DFMGI steadily fell all day to close down by 3.8% at 5451 points from moderate turnover of just over AED 2 billion. Emaar Properties (EMAAR) and DFM shares dominated trading, closing down by 5.8% at 12.30 and 6.8% at 5.05 respectively. Du Telecom (DU) was the worst hit amongst the active stocks with a 6.9% fall to 5.51. Most others fell between 3%-5%.

Only 5 stocks rose, the only one on significant trading was GGICO as mentioned previously.

Abu Dhabi Securities Market

The ADSMI fell a less panicky 1.1% to 4630 on moderate turnover of AED 1.3 billion. Dana Gas (DANA) dominated the floor with AED 270 billion worth of deals and a rise of 1.7% to 2.30, possibly due to their expansion news. Another energy related stock, Aabar Petroleum (AABAR), also stood out in the sea of red, with a 1.1% gain to 4.28.

Other rises included an encouraging 4.4% for Gulf Cement on robust trading, and less than 1% for Oasis Leasing (OILC), AGTHIA, and RAK Cement (RAKCC) on active turnover.

ARKAN had the biggest hit in the actively traded list, dropping 3.5% to 3.45. First Gulf Bank (FGB)N fell 2.7%, NBS 2.6%, and Etisalat (ETISALAT) 2.2% to 23.35. The remainder fell less than 2% or on thin trading.

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