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Arabtec Leads Market Rally

The Dubai Financial Market benchmark index advanced 1.36 per cent to 1,508.86, its best finish since January 29. The index rose 5.3 per cent from the previous week. The Abu Dhabi Securities Exchange main index added nearly 1 per cent to 2,254.55 and was 3.6 per cent higher from last week.

“UAE markets resiliently held onto gains this week despite end of week position closing,” said Matthew Wakeman, managing director of cash and equity linked trading at EFG Hermes.

There markets were also lifted by more active participation by foreign institutions. “Foreigners were net buyers this week as they saw very attractive valuations,” said Hesham Bakry, institutional sales manager at Al Futtaim HC Securities.

Emaar Properties reported after the market closed, that it incurred a fourth quarter net loss of Dh1.77 billion due to writedowns in its US. The company said revenue dropped to Dh3.495 billion from Dh5.142 billion a year earlier.

Emaar shares finished 0.49 per cent lower at Dh2.0.

Emirates NBD, the country’s biggest bank by assets, said its full year net profit fell 7 per cent to Dh3.68 billion due to writedowns and impairments on its investments. Trading in NBD shares were suspended on Thursday as its board of directors met to discuss its financial results. It posted its results after the closing of the Dubai bourse.

Arabtec however, outperformed the market this week, adding 11.11 per cent to Dh1.30, piling up its gains this week of 57.21 per cent. Arabtec earlier in the week said its full year net profit 
jumped 77 per cent.

“Arabtec was still the outperformer despite reaching its foreign ownership limit today. The stock has seen heavy institutional buying this week. We now need a reason to hold these levels as locals are speculating that there must be a story underpinning this demand,” 
said Wakeman. In Abu Dhabi, property issues pulled up shares with Aldar Properties gaining 5.44 per cent to Dh1.62. Sorouh Real Estate advanced 2.54 per cent to Dh2.42.

RAK Properties’
Net Profit Falls

RAK Properties said its full year net profit fell 24 per cent as revenue dropped.

The company said its net profit declined in 2008 to Dh379.5 million compared to Dh496.2 million in 2007. RAK Properties’ investment portfolio includes residential, commercial and leisure facilities 
in Abu Dhabi.

Tabreed Profit Up

Dubai-listed National Central Cooling company, also known as Tabreed, said on Thursday its full year net profit was slightly higher from the year before 
at Dh73 million.

Tabreed’s earnings were weighed by a derivative writedown of Dh12.2 million arising from a 
convertible bond.

Without this non-cash finance cost, net profit for 2008 would have increased by 19 per cent, the company said in a statement.

· rocel@khaleejtimes.com