Aug. 16 (Bloomberg) -- United Arab Emirates and Qatari shares retreated as oil prices declined, Union Properties PJSC reported a loss and profit at Industries Qatar slid.
The Dubai Financial Market General Index declined 2.2 percent while Abu Dhabi’s index and Qatar’s DSM 20 Index lost 0.5 percent each.
“People have been looking at earnings here even more than oil and other indicators,” said Rabih Sultani, hedge fund manager at Duet Mena Ltd. “The biggest weakness we’ve seen in Dubai is real estate, and that goes for Qatar too, so those companies are having the biggest drag on the market right now.”
Union Properties, the Dubai-based developer, fell the most in six months after reporting a loss. Industries Qatar, the region’s second-largest petrochemical company, fell to a two- week low after posting a first-half profit that declined 43 percent. Crude fell 4.3 percent on Aug. 14, finishing the week at $67.51 a barrel.
Crude prices, which have fallen 54 percent since their July 2008 high of $147.27 a barrel, have heightened the blow of the credit crunch on the region’s real estate and finance industries. Property prices in Dubai have slumped and the finance industry faced a slowdown. The six countries that make up the Gulf Cooperation Council collectively supply 20 percent of the world’s oil.
Union Properties declined the most since Feb. 22, dropping 9.6 percent to 1.04 dirhams. The developer reported a second- quarter loss after writing down the value of its properties. The loss was 228 million dirhams ($62 million) after a profit of 317.7 million dirhams a year earlier. Union Properties wrote down 304 million dirhams on the value of its properties, it said on Aug. 13.
Lower Demand
Industries Qatar fell 3.1 percent to 106.7 riyals, the lowest level since Aug. 2. The largest publicly traded company in the Gulf country said profit declined as the global recession cut demand for petrochemicals and steel.
Saudi Arabia’s Tadawul All Share Index added 0.3 percent to 5,855.25. Oman’s MSM30 Index gained 0.1 percent, while the Kuwait Stock Exchange advanced 0.3 percent. Bahrain’s measure fell by 0.4 percent.
The Dubai Financial Market General Index declined 2.2 percent while Abu Dhabi’s index and Qatar’s DSM 20 Index lost 0.5 percent each.
“People have been looking at earnings here even more than oil and other indicators,” said Rabih Sultani, hedge fund manager at Duet Mena Ltd. “The biggest weakness we’ve seen in Dubai is real estate, and that goes for Qatar too, so those companies are having the biggest drag on the market right now.”
Union Properties, the Dubai-based developer, fell the most in six months after reporting a loss. Industries Qatar, the region’s second-largest petrochemical company, fell to a two- week low after posting a first-half profit that declined 43 percent. Crude fell 4.3 percent on Aug. 14, finishing the week at $67.51 a barrel.
Crude prices, which have fallen 54 percent since their July 2008 high of $147.27 a barrel, have heightened the blow of the credit crunch on the region’s real estate and finance industries. Property prices in Dubai have slumped and the finance industry faced a slowdown. The six countries that make up the Gulf Cooperation Council collectively supply 20 percent of the world’s oil.
Union Properties declined the most since Feb. 22, dropping 9.6 percent to 1.04 dirhams. The developer reported a second- quarter loss after writing down the value of its properties. The loss was 228 million dirhams ($62 million) after a profit of 317.7 million dirhams a year earlier. Union Properties wrote down 304 million dirhams on the value of its properties, it said on Aug. 13.
Lower Demand
Industries Qatar fell 3.1 percent to 106.7 riyals, the lowest level since Aug. 2. The largest publicly traded company in the Gulf country said profit declined as the global recession cut demand for petrochemicals and steel.
Saudi Arabia’s Tadawul All Share Index added 0.3 percent to 5,855.25. Oman’s MSM30 Index gained 0.1 percent, while the Kuwait Stock Exchange advanced 0.3 percent. Bahrain’s measure fell by 0.4 percent.
Source: Bloomberg
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