UAE markets 24 Jul 2008

UAE market news & discussions for 24 July 2008 A busy day for results today with several insurance companies releasing results, Du losing not as much money as last year, NBAD with record profits, and Waha Capital with modest profit growth. After yesterday's big gains on the DFM, the index pulled back slightly while Abu Dhabi remained in the green. 2008 Q2 & H1 financial result updates today Abu Dhabi Ship Building (ADSB) results this morning - 2008 Q2 profit +168% to Dh36m +168%, but H1 profit soared a massive 617% to 63m. That could be due to new refit contracts awarded during the period - it's not clear if the total contract value is booked as revenue in the quarter it's awarded, or staggered over the duration of the refit. Al Madina Finance (ALMADINA) preliminary results this morning - 2008 Q2 profit +166% to AED 62m, and H1 +98% to AED 130m but in a typically obscure disclosure there was nothing to explain why their profits were up so much. Does the DFM have as prerequisites for secondary listings of Kuwait companies, that they should have bad printers and unhelpful disclosures? Al Madina fundamentals look about average for the subset of Kuwait secondary listings - PE is a little cheaper, Return on Equity (ROE) is a little higher, but Price to Book Value (PBV) is a little higher also. Arab Orient Insurance Company (AOIC) results this afternoon - Q2 profit +29% to Dh41m, and +29% to Dh 81m for H1. Steady profit growth, solid Return on Equity, and if shares really were for sale at the price ESCA quotes, they'd be one of the top bargains of the UAE stock markets. Du Telecom (DU) results this morning - Q2 loss of Dh-44m was 84% smaller than last year, and H1 loss of -110m was 79% lower. It looks like they could be on target to turn a profit either late in 2008 or early in 2009. Dubai Islamic Insurance (AMAN) - 2008 Q2 profit fell 82% to only Dh1.7m, H1 fell 45% to 7.7m. PEs are at eye-watering levels after shareholders seem to lend policyholders money to cover operating losses for the insurance company. There was an overall profit because the policyholder fees due to shareholders was larger than the loan amount. Emirates Insurance Company (EIC) - 2008Q2 profit -43% to AED 29m, H1 +8% to 95m. Profits for the quarter suffered due to increased costs despite premium revenue almost double the amount in 07Q2. Profits for the half year increased slightly because EIC had a good first quarter from investments, but even back then, their Gross Profit was stagnant despite premium revenue almost doubling. National Bank of Abu Dhabi (NBAD) - NBAD 2008 Q2 profit Dh1bn +71%, H1 1.9bn +58%. Solid profit growth looks good and there was a healthy increase in Gross Profit (Net Interest Income) despite a drop in Revenue for Q2. NBAD also added AED 120m worth of investment gains for the quarter. Overall, a good quarter and share prices are such that they are certainly worth considering if you're looking for a bank stock in Abu Dhabi. RAK Insurance (RAKNIC) results this morning - Q2 profit fell 4% to Dh8m, but H1 profit was up 1% to 24m. Revenue (gross premium) fell sharply compared to last year but there was nothing in the Directors report to explain why, or what RAKNIC plan to do about it. Sorouh Real Estate (SOROUH) - 2008 Q2 profit Dh620m +39%, H1 980m +76% - not much information from a Reuters report. There was a Board meeting this morning but results have not yet appeared on ADX website. Unknown where profit growth comes from. Share price was up on heavy trading today. Umm Al Quwain Cement (QCEM) results this morning - Q2 profit +59% to AED 81m and H1 profit +79% to 130m. Impressive profit results from the stockmarket investment division of the cement company - revaluation gains meant Net Profit was up 60-80%, and 10 times as much as what they made from the cement business - profits from which fell by a third. Shares look like a bargain based on earnings but expensive if you discount the extraordinary income. United Insurance Company (UIC) Q2 profit Dh11m +8%, H1 profit 16m (no change). Reasonable growth in core Revenue and Gross Profit from insurance operations but investments took a hit so Net Profit suffered. The market doesn't care anyway, UIC shares haven't traded since January this year. Waha Capital (OILC) results released late yesterday - Q2 profit +13% to Dh37m +13%, H1 +10% to 67m +10%. Modest growth in profits, and not really enough to justify the high PE their shares trade at. ROE is less than half the market average but according to Waha Capital, the first half of this year has laid the "foundation for growth". The market seemed to accept that, Waha shares rose 1.2% to AED 2.53 today. Sharewadi Calendar next week Thursday, 24 July 2008 ADSB 08Q2 financial statements and BOD report (ADX, am) ALMADINA 08Q2 preliminary financial results AMAN 08Q2 financial statements (DFM, am) AOIC 08Q2 financial statements (DFM, pm) ARIG 08Q2 results due before today DU 08Q2 financial statements & press release (DFM, am) EIB 08Q2 financial statements (DFM, am) EIC 08Q2 financial statements and BOD report (ADX,am) ETISALAT 2008 25% interim dividend ex-dividend date FGB complete financial statements released (ADX, am) JULPHAR 08Q2 financial statements (ADX, pm) NBAD BOD meeting, 08Q2 results? Agenda not supplied. NBAD 08Q2 financial statements and BOD report (ADX, pm) NGI 08Q2 financial statements (DFM, pm) QCEM 08Q2 financial statements (ADX, am) RAKNIC 08Q2 financial statements (ADX, am) SOROUH BOD meeting at 11:00am - 08Q2 results? Agenda not supplied. SOROUH 08Q2 financial results (pm, Reuters, not on ADX website) UIC 08Q2 financial results summary (ADX, during trading) Friday, 25 July 2008 Saturday, 26 July 2008 SALAM BOD meeting - maybe 08Q2 results (disclosure not clear) Sunday, 27 July 2008 EKTTITAB BOD meeting 08Q2 results? No agenda supplied. ETISALAT 2008 25% interim dividend record date GPI BOD meeting 08Q2 results this week? Agenda and date not supplied. IIG BOD meeting, agenda not supplied Monday, 28 July 2008 MAZAYA BOD meeting 08Q2 results? Agenda not supplied. NTWK 09FY financial guidance issued NBF BOD meeting at 5:00pm to review 08Q2 results Tuesday, 29 July 2008 AGTHIA 08Q2 results due ALDAR BOD meeting at 2:00pm - 08Q2 financial results Wednesday, 30 July 2008 Thursday, 31 July 2008 DrakeScull DSI share allotment notices and refunds start UAE public sector holiday Al Israa Al Miraj. DFM ADX DIFX closed? Dubaisharetalk latest updates

• ADSB 08Q2 profit Dh36m +168%
• Agility buys Bumi Engineering
• Ajman Bank in DFM index
• ALMADINA 08Q2 profit Dh62m +166%
• ALSALAMSUDAN 08Q2 profit Dh18m +87%
• AMAN 08Q2 profit Dh1.7m -82%
• AOIC 08Q2 profit Dh41m +29%
• Arabtec Silverene contract
• DAE buying $4bn planes
• DAE $1bn loan
• DU 08Q2 loss Dh-44m +84%
• EIC 08Q2 profit Dh29m -43%
• Emaar MGF IPO refund court case
• ETISALAT acquisitions
• GFH steel plants
• Insider trades July 2008
• NBAD 08Q2 profit Dh1bn +71%
• QCEM 08Q2 profit Dh81m +59%
• RAKNIC 08Q2 profit Dh8m -4%
• UIC 08Q2 profit Dh11m +8%
• Waha 08Q2 profit Dh37m +13%

More UAE stock market news and discussions...

best stock rises symbol price change TKFL 7.81 +0.70 +9.8% FBICO 4.36 +0.38 +9.5% FOODCO 5.64 +0.37 +7% RAKCEC 4.02 +0.20 +5.2% CBD 10.55 +0.50 +5%

worst stock falls symbol price change WARE 16.25 -2.85 -14.9% NBF 5.75 -0.63 -9.9% JEEMA 3.30 -0.17 -4.9% ALFIRDOUS 2.30 -0.10 -4.2% EKTTITAB 2.99 -0.11 -3.5%

top volume symbol value (AED) price EMAAR 348,322,762 10.60 SOROUH 275,953,355 9.47 AJMANBANK 167,539,808 3.34 METHAQ 158,683,960 7.77 AIRARABIA 134,909,960 1.65

Dubai Financial Market

The DFMGI fell 0.36% to 5438 from moderate turnover of AED 1.37 billion - less than yesterday. Emaar Properties (EMAAR) dominated the floor with AED 348 million worth and despite an initial gain, ended the day flat at AED 10.60. Another 3 stocks saw turnover of more than AED 100m - AJMANBANK down 0.9% to 3.34, AIRARABIA down 0.6% to 1.65, and DFM down 2.1% to 4.72.

GGICO stood out with a solid 4.6% gain to 8.36 and heavier than usual trading. Union Properties (UPP) was also popular and rose 2.2% to 5.66. Arabtec (ARTC) crept up by 1% and another 4 gainers rose less than 1% or on thin trading.

The top 4 losers all fell on trading of less than AED 200,000 each. AMAN insurance stood out with higher turnover and a 2.6% fall to 3.38 after releasing unimpressive results this morning. Most of the more actively traded stocks fell between 1-2% with another 3 falling less than 1%.

Abu Dhabi Securities Market

The ADX went the opposite way as the Dubai exchange, and gained 0.4% to close just over 5000 points at 5006. Sorouh Real Estate (SOROUH) was the dominant stock with AED 276m worth of trading and a solid 2.5% rise to 9.55. Two other stocks saw more than AED 100m of turnover - METHAQ up just 0.65%, and Aldar Properties (ALDAR) up 1.6% to 12.75 making it a good day for Abu Dhabi property stocks.

Of the top 9 gainers, only RAK Ceramics (RAKCEC) traded more than AED 1m worth as it gained 5.2% to 4.07. Sorouh was the only other stock trading significant volumes and rising more than 2%. NBS had a busier than usual day and rose 2% to 3.07, ADNH was up 1.9% to 8.00, Oasis Leasing (OILC) and National Bank of Abu Dhabi (NBAD) rose 1.2%, Dana Gas (DANA) was up 1.1%, and the remaining stocks rose less than 1% or on thin trading levels.

RAK Properties (RAKPROP) was the worst of the losers trading significant volumes, as it fell 2.0% to 1.90. No other losers fell more than 1% and with greater than AED 1 m of turnover. Etisalat (ETISALAT) dropped by 0.25% to 20.05.

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