UAE market news & discussions for 29 January 2008 The DFM started off poorly but recovered to end the day in the green, with Dubai Investments soaring 7.5% after a positive earnings surprise. The ADSM continued down however with turnover about the lowest we've seen for a while. NCTH shares stood out with a big jump on heavier than normal volumes. DPW shares on the DIFX recovered by one cent today. As I write this, stocks around the world are rising on the hopes of another rate cut in the US. Could this be the bottom of the current rout in the markets? Well, Confucius say: He who picks bottom get stinky finger. Other news and results Preliminary work was reported to have begun on Nakheel's Al Burj tower - the 1 kilometer high building that will overshadow the Burj Dubai one day. Emirates Post have apparently applied for a bank licence. Which might leave Amlak and Tamweel scratching their heads about their failed applications. Results released today - Abu Dhabi Aviation (ADAVIATION) saw a solid looking 50% increase in profits from AED 50.5m to AED 76m despite a dramatic fall in Gross Profit of 71% due to increasing costs. Preliminary results did not have further details to explain where the other income came from. Their shares plummeted 7.6% today on thin trading to 3.51 dhs per share.
- Amlak Finance (AMLAK) proposed a 10% share dividend.
- Bank of Sharjah (BOS) proposed a 25% cash dividend.
- Commercial Bank International (CBI) almost doubled Revenue and Operating Profit which is commendable. The disastrous result they had for 2006 due to investments going south, meant that 2007 Net Profit of AED 320m was an eye-watering 3600% increase, and PE now looks a much more reasonable 10.1. CBI shares fell 5.8% to 3.24 today.
- Commercial Bank of Dubai (CBD) net profit was up an impressive 56% to AED 936m for 2007, partly due to a substantial turnaround in investment revaluation from a loss in 2006 to a gain of AED 117m this year. Revenue growth of 36% was still healthy and PE of about 16 looks to in line with market average. CBD shares saw no trading today.
- Dubai Investments (DIC) profits increased 52% to AED 1.5 bn for 2007 which exceeded both EFG and most of the Chairman's forecasts. Q4 earnings increased an even more impressive 77% to AED 435m according to our calculations. We'll have to wait for full accounts from DIC to see just how much of that came from revaluation of property - previous results have indicated little growth in what would commonly be regarded as operating earnings. The market seemed happy though, DIC shares rose 7.5% to 5.59 today.
- Emirates Foodstuffs and Mineral Water (AGTHIA) profits grew nicely by 31% to 38 m dhs. However, at a PE of 32 based on FY 2007 earnings, their shares still look expensive compared to the rest of the market. Agthia shares fell 1.9% to 2.07 today.
- Finance House (FH) results released.
- First Gulf Bank (FGB) profit was up a solid 30% to just over AED 2 bn, a little lower than the 37% increase in Revenue (or Operating Profit - that's not clear from the disclosure submitted by FGB). Shares are not as cheap as they were a few months ago but with a PE of just under 15, they may still be worth considering if FGB can maintain the growth in earnings. Net Profit for Q4 was up almost 60% compared to 2006 Q4 which is encouraging but there wasn't enough data supplied to determine which income sources contributed to the increase. FGB shares fell 2.7% to 23.15.
- National Bank of Abu Dhabi (NBAD) profits rose 20% to AED 2.5 billion, a steady rather than impressive performance but with PE down to 11.6, their shares look cheaper than many other bank stocks. A concern is the 50% jump in costs resulting in Operating Profit increase of only 16%. More information will, presumably, be revealed when NBAD release their full accounts. NBAD shares fell marginally to 23.95 on very low turnover.
- National Corporation for Tourism & Hotels (NCTH) 2007 FY profit of AED 83m was an astounding 600% increase from the meagre AED 12m they made last year. Preliminary results don't have sufficient detail but there was obviously some extraordinary income that pushed profits up. Nevertheless, operating profit was up by a still very impressive 190%. NCTH shares shot up 10% to 9.34 today on greater than usual volumes, but still very low turnover.
- Ras Al Khaimah National Insurance (RAKNIC) profit growth of 73% to 40m dhs, while net underwriting profit barely changed, increasing by just 4%. Investment income instead of a loss last year helped improve their bottom line. Their shares last traded in December 2007.
- RAK Ceramics (RAKCEC) preliminary results released.
- Sorouh Real Estate (SOROUH) managed to collect the biggest percentage increase of the day - a massive 10,000% for their Operating Profit. But a meaningless number since they made a small loss for the previous period. Net Profits were AED 1.25 bn resulting in a PE of a reasonable looking 16.0. Comparisons with previous year figures are distorted because Sorouh have supplied the numbers for 18 months, not 12. Wasn't Sorouh the company that had some accounting problems in Q2 2006 that resulted in a fine from the market regulators? Sorouh shares fell 1% to 8.16 today.
Results and meetings tomorrow - Al Ain Ahlia results expected (possibly - meeting also 04 Feb?)
- Al Dhafra results due
- Aramex results possibly expected (EFG Hermes estimate)
- Dana Gas results due
- Dubai Islamic Bank BOD meeting
- National bank of Umm Al Quwain BOD meeting
- RAK Cement Company BOD meeting
- Union Insurance Company BOD meeting (was postponed)
Result announcment date and board of director (BOD) meetings coming up - Abu Dhabi Commercial Bank (ADCB) BOD meeting 04 Feb 2008 at 14:00
- Al Ain Ahlia Insurance (AAAIC) BOD meeting 05 Feb 2008 at 11:00
- Al Buhaira National Insurance (ABNIC) BOD meeting 04 Feb 2008 at 10:00
- Sharjah Insurance Company (SICO) BOD meeting 06 Feb 2008 at 18:00.
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| best stock rises | | symbol | price | change | | FCI | 4.98 | +0.45 | +9.9% | | NCTH | 9.34 | +0.84 | +9.9% | | DIC | 5.59 | +0.39 | +7.5% | | GFH | 14.50 | +1.00 | +7.4% | | GGICO | 11.55 | +0.55 | +5% | | | worst stock falls | | symbol | price | change | | FBICO | 3.29 | -0.36 | -9.9% | | ADAVIATION | 3.51 | -0.29 | -7.6% | | CBI | 3.24 | -0.20 | -5.8% | | OEIHC | 37.70 | -2.20 | -5.5% | | AABAR | 4.34 | -0.18 | -4% | | | top volume | | symbol | value (AED) | price | | EMAAR | 761,013,747 | 12.25 | | DFM | 512,441,331 | 5.20 | | DIC | 284,054,265 | 5.59 | | DEYAAR | 157,906,415 | 2.54 | | ALDAR | 124,576,954 | 10.10 | |
Dubai Financial Market
After an early fall, the DFMGI recovered to close up by 0.79% at 5494 from AED 2.3 bn of turnover. Dubai Investments (DIC) stood out with a 7.5% gain to 5.59 and robust turnover. DFM shares traded more heavily and rose 3% to 5.20, while Emaar Properties (EMAAR) saw the greatest turnover but held the index back with its 0.4% fall to 12.25.
GGICO had an excellent day with a 5% rise from heavier than usual trading. Tabreed (TABREED) also looked healthy with a 3.6% rise. The reminaing gainers were up less than 2% or on thin trading.
Amlak Finance (AMLAK) and Dubai Islamic Bank (DIB) stood out on the losers' list with a 2.9% fall to 4.30 and 2.4% fall to 10.30 respectively. The other five losers fell less than 1%.
Abu Dhabi Securities Market
The ADSM traded just AED 472m dhs worth of shares as it fell 1.35% to 4568 points with few actively traded stocks rising. NCTH stomped ahead by 10% to 9.35, Bank Of Sharjah (BOS) was up 1.5%, Sudan Telecom (SUDATEL) 1.2% and BILDCO (BILDCO) up 1%. Other risers traded less than AED 1m dhs worth or gained less than 1%.
Aldar Properties (ALDAR) was saw the highest turnover with just AED 113m dhs worth traded and a 1% fall to 10.20. Commercial Bank International (CBI) stood out in the losers list with busier than usual trading and a 5.5% fall to 3.25. Aabar Petroleum (AABAR) wasn't far behind with a 4.9% fall to 4.30. Abu Dhabi National Energy (TAQA) fell 3.4%, ARKAN 3.1%, Oasis Leasing (OILC) 3%, Dana Gas (DANA) and Etisalat (ETISALAT) both fell 2.9%, RAK Properties (RAKPROP) 2.3% and the remainder fell less than 2% or on low turnover.
