Dubai Shares Fall on Earnings Concern, Dubai World Meeting; Kuwait Gains

Dubai shares fell for a third time this week amid investor concern about earnings and Dubai World as the state-owned company seeking to renegotiate the terms on $23.5 billion of debt met with creditors in the emirate.

The DFM General Index lost 0.2 percent to close at 1,528.97 as Emirates NBD PJSC, the United Arab Emirates’ biggest lender, by assets fell the most since July 18 and Dubai Investments PJSC, the Dubai-based investment company with stakes in more than 40 companies, ended a five-day winning streak. Emaar Properties PJSC, the builder of the world’s tallest tower, closed unchanged before reporting a second-quarter profit after a year-earlier loss. The DFM Index rose 0.6 percent this week.

“Investors are being cautious,” said Hassan El Salah, deputy head of institutional equities at Al Ramz Securities in Abu Dhabi. There has been “last minute selling before any announcement by Dubai World, especially by banks exposed to the company,” he said.

Dubai World began presenting its debt restructuring plan to about 70 banks today. Its main creditor banks agreed in May to alter the terms on $14.4 billion of bank loans and $8.9 billion of government liabilities to resolve a crisis that roiled global markets last year. It said banks would be paid $4.4 billion in five years and another $10 billion over eight years at below-market interest rates supported by assets sales.

Emirates NBD declined 1.6 percent to 2.46 dirhams. Dubai Investments dropped 1.2 percent, the most since June 30, to 82.8 fils.

Emaar was unchanged at 3.37 dirhams. After markets closed, it reported net income of 802 million dirhams ($218.4 million) after a loss of 1.285 billion dirhams a year earlier. Revenue climbed to 2.65 billion dirhams from 1.94 billion dirhams.

Investors were waiting for Emaar results for “an indication to the property and construction market,” said Vyas Jayabhanu, head of Al Dhafra Financial Brokerage LLC in Abu Dhabi.

Qatar’s QE Index and Bahrain’s gauge slipped 0.1 percent. Oman’s MSM 30 Index declined 0.9 percent. The Kuwait Stock Exchange Index rose 0.2 percent and Abu Dhabi’s measure gained 0.6 percent. Saudi Arabia’s Tadawul All Share Index was closed for the weekend.

To contact the reporter on this story: Zahraa Alkhalisi in Abu Dhabi at zalkhalisi@bloomberg.net

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