Shares in Eshraq Properties rose 0.82 percent on Monday as the company reported a surge in third quarter (Q3) net profit.

Q3 net profit for the year 2018 amounted to 13.5 million United Arab Emirates dirhams ($3.68 million), compared to 0.685 million UAE dirhams a year ago.

The company said in a statement to the exchange that the growth is also attributable to “a steady increase in occupancy of the leasing and hospitality business and cost rationalization measures employed this year”.

Eshraq Properties was the most traded stock on Monday, in terms of volumes on the exchange, recording 13.6 percent of the total volume on the stock market. The stock rose 0.82 percent and pushed the Abu Dhabi index to close 1.07 percent higher.

The company’s stock is now trading at 0.612 UAE dirhams per share. Amer Saqfelhait, AVP trading manager at Al Mal Capital, told Zawya that he sees “the stock testing 0.63-0.65 dirhams per share” going forward.

For the year, the company’s share price has dropped close to 14 percent, tracking a retreat in the real estate sector in the United Arab Emirates (Read more).

In mid-October, the company received the necessary regulatory approvals to buy back up to 10 percent of its issued shares through a buy-back program that was initially approved by Eshraq’s General Assembly on September 30.

In June, the company announced to the exchange that it had dropped plans to merge with Reem Investments saying that “the two parties were not able to settle their differences regarding certain commercial matters underpinning the Investment”.

Elsewhere in the region, Dubai’s index ended the day mainly flat, Qatar’s index gained 1.23 percent while Oman’s index dropped 0.22 percent, Kuwait’s index dropped 0.12 percent and Bahrain’s index edged up 0.05 percent.

By 15:03 GST, Saudi Arabia’s index was trading 0.52 percent lower and Egypt’s EGX30 was trading 0.43 percent higher.

(Reporting by Gerard Aoun; Editing by Shane McGinley)
(gerard.aoun@refinitiv.com)

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