Dubai: Abu Dhabi stocks ended the day higher on the back of banking and telecommunications stocks, while Dubai stocks dropped for a fourth straight session as its key property stocks underperformed.
Dubai Financial Markets dropped 0.3 per cent to 2,568 points after advancing as much as 0.5 per cent at some point during the session. Real estate stocks that helped the index score some points earlier in the day ended up trading lower at close. DAMAC Properties (-2.5%), Emaar Development (-2.2%) and Emaar Properties (-0.8%) all traded in red continuing their gloomy trend amid trending-down property market which might take another 12 to 24 months to recover.
Deyaar Development also retreated 1.1 per cent. The developer announced its accumulated losses shot up to Dh1.75 billion as of last year representing 30.3 per cent of its capital. It mainly attributed the losses to “the provisions for impairment of assets due to the real estate market situation in Dubai recorded in 2010”.
The firm also took on provisions of certain assets amounting to Dh661 million in 2018 as it implemented International Financial Reporting Standard 9 (IFRS 9), while it incurred losses of Dh216.9 million last year mostly arising from impairment and fair value adjustments in its hospitality assets as a result of the pandemic.
The company is working hard towards addressing the accumulated losses as it already has three projects going on in the hospitality sector which it believes will do their part in increasing the revenues for the coming years. It also plans to continue launching quality projects and diversify its sources of income through property and facilities management.
Abu Dhabi Securities Exchange pointed higher by 0.2 per cent to 5,657 points. Its lenders First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Bank of Sharjah and Sharjah Islamic Bank all contributed to the gains. But the single-biggest boost was the heavyweight Etisalat which ticked up 0.8 per cent to trade at Dh19.9.
The telco firm is trading at a whopping 18 per cent up for the year after ending all but two weeks higher this year, riding high on a rally triggered as it further opened up to foreign investors giving them eligibility to own upto 49 per cent of the stock. It was also one of the few companies that reported higher 2020 profits.
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