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MIDEAST STOCKS-Dubai's DSI slumps, DAMAC surges on index entry in generally flat region
May 16, 2017 / 8:19 AM / in 5 months

MIDEAST STOCKS-Dubai's DSI slumps, DAMAC surges on index entry in generally flat region

DUBAI, May 16 (Reuters) - Dubai-listed builder Drake & Scull plummeted in response to its first-quarter results, while Dubai real estate firm DAMAC jumped on news that MSCI would add it to an index, in otherwise largely flat Gulf markets early on Tuesday.

DSI slumped 7.6 percent to 0.352 dirham, a 15-month low, after it reported a first-quarter net loss attributable to shareholders of 722.5 million dirhams ($196.9 million) versus a profit of 9.8 million dirhams in the year-ago period.

The company is in the midst of a capital restructuring plan to wipe out its accumulated losses, and has said it expects to receive a capital injection of 500 million dirhams from a strategic investor by mid-2017.

DAMAC rose 4.0 percent after MSCI said it would add the stock to its United Arab Emirates index on June 1. Arqaam Capital estimated the inclusion would bring $68 million of passive fund inflows into the stock.

Dubai’s stock index was down 0.2 percent.

Banking shares were some of the top gainers in neighbouring Abu Dhabi, helping lift the index 0.1 percent; Abu Dhabi Commercial Bank was up 1.9 percent.

In Saudi Arabia, the index barely moved after 50 minutes of trade as 67 shares advanced and 59 fell. The petrochemical sector was mixed, with larger companies such as Saudi Basic Industries underperforming smaller firms.

Analysts at NCB Capital said the sector’s bottom line in the first quarter almost doubled from a year ago and revenue rose by about 16 percent. Many of the stocks, however, are trading near fair value, leaving investors with little incentive to buy despite a rebound in oil prices over the last few days.

Qatar’s index was also flat with declining shares outnumbering rising ones by nine to six. (Reporting by Celine Aswad; Editing by Andrew Torchia and Andrew Heavens)

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