Gulf stocks mixed; Emaar Mall up after losing Souq.com

Stock markets in the Gulf were mixed on Tuesday amid low trading volumes, with Dubai’s fall cushioned by a strong rebound in Emaar Malls, which lost Souq.com to US-based Amazon.

Dubai’s main index declined 0.2 percent to close at 3,447 points, with volumes at AED 287 million. The advance-decline ratio stood at 4-24.

Emaar Malls jumped 3.6 percent to AED 2.58, snapping its two-session decline since announcing its $800 million bid to acquire UAE-based online retailer Souq.com.

“The acquisition would have been percieved as negative by minority shareholders, given potential reduction in dividends," Ayub Ansari, senior analyst at Securities & Investment Company (SICO), told Argaam.

“Typically, e-commerce start-ups are acquired at expensive multiples, which might be seen as value dilutive by the common investor,” he added.

Meanwhile, Emaar Properties fell nearly 1 percent to AED 7.2, and DXB Entertainments lost 1.6 percent to reach AED 0.99.

In Abu Dhabi, the general index rose 0.1 percent to 4,470 points, pushed up by banking and industrial stocks. First Gulf Bank was up 0.4 percent to AED 13 and National Bank of Abu Dhabi (NBAD) rose added 0.5 percent to AED 10.5.  The two lenders will be trading as one merged entity, which is expected to keep the NBAD name, starting next week.

Elsewhere in the region, Qatar’s QE index gained 0.3 percent to 10,462 points, and Kuwait’s price index added 0.3 percent.

Saudi Arabia’s Tadawul All Share Index was last trading up 0.3 percent.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com