Monday, 10 January 2011

U.A.E. Shares Fall on Earnings, Provisioning Concern; FGB Drops - Bloomberg

United Arab Emirates shares declined, with Dubai’s benchmark stock index retreating for a second day, on speculation fourth-quarter earnings will disappoint given bank’s need to raise provisions.

Emirates NBD PJSC, the U.A.E.’s biggest bank, fell 2 percent and First Gulf Bank PJSC in Abu Dhabi dropping for the first time this week. The DFM General Index lost 0.3 percent to 1,660.64, the lowest intraday level since Jan. 6, at 12:25 p.m. in Dubai. Abu Dhabi’s ADX General Index decreased 0.2 percent.

“There’s some investor concern fourth-quarter earnings will disappoint,” said Waleed Al Khateeb, senior finance manager at Dubai-based Daman Securities LLC. “There is a lot of pressure on banks given the provisioning issue.”

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