Aramex, the largest courier company in the region, has been at the sharp end of the rising price of oil and recent regional unrest. That could be reflected in the company's first-quarter earnings.
"Share price performance will be muted in the short term, in our view, following possibly weak first-quarter results this year and until there is better visibility on revenue and cost outlook," said Hatem Alaa, an analyst at Alembic HC Securities based in Cairo.
"Also, investors are likely to remain cautious until there are clear signs regarding how revenue outlook will change in countries like Egypt as life gradually returns to normal, and how the company will be able to manage high transport costs, given high oil prices, and pressure to raise salaries."
Staff costs are expected to rise 11 per cent this year. That compares with a 5 per cent rise last year, and 8 per cent in 2009. The expected increase comes as companies in countries that include Egypt and Saudi Arabia raise wages following government reforms.
Mr Alaa cut the company's target price by 4 per cent to Dh2.17 a share, but upgraded the stock to "overweight" on valuation grounds. Shares of the courier company are down almost 7 per cent since the beginning of the year. That still outperforms Dubai's benchmark. Shares gained more than 6 per cent yesterday to close at Dh1.90.
Aramex is expected to increase its earnings modestly this year. Revenue from its business in the region grew 8 per cent last year compared with the previous year, versus 28 per cent for its Asian, European, and North American businesses. The UAE and Saudi Arabia, Aramex's two largest markets in the region, are mostly unaffected by unrest.
Assuming a 15 per cent drop in earnings from countries including Egypt, Bahrain and Syria and low single-digit growth elsewhere, Aramex would still post earnings growth of up to 3 per cent this year, he said. Mr Alaa revised his revenue estimates for the company to Dh2.43 billion from Dh2.48bn and cut net income estimates for the same period to Dh210 million from Dh222m.
SPECS
Nissan 370z Nismo
Engine: 3.7-litre V6
Transmission: seven-speed automatic
Power: 363hp
Torque: 560Nm
Price: Dh184,500
Tomorrow 2021
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Director: Laila Abbas
Starring: Yasmine Al Massri, Clara Khoury, Kamel El Basha, Ashraf Barhoum
Rating: 4/5
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How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
McIlroy's struggles in 2016/17
European Tour: 6 events, 16 rounds, 5 cuts, 0 wins, 3 top-10s, 4 top-25s, 72,5567 points, ranked 16th
PGA Tour: 8 events, 26 rounds, 6 cuts, 0 wins, 4 top-10s, 5 top-25s, 526 points, ranked 71st
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Hamilton profile
Age 32
Country United Kingdom
Grands Prix entered 198
Pole positions 67
Wins 57
Podiums 110
Points 2,423
World Championships 3
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Call of Duty: Black Ops 6
Developer: Treyarch, Raven Software
Publisher: Activision
Console: PlayStation 4 & 5, Windows, Xbox One & Series X/S
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Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
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Jigra
The five stages of early child’s play
From Dubai-based clinical psychologist Daniella Salazar:
1. Solitary Play: This is where Infants and toddlers start to play on their own without seeming to notice the people around them. This is the beginning of play.
2. Onlooker play: This occurs where the toddler enjoys watching other people play. There doesn’t necessarily need to be any effort to begin play. They are learning how to imitate behaviours from others. This type of play may also appear in children who are more shy and introverted.
3. Parallel Play: This generally starts when children begin playing side-by-side without any interaction. Even though they aren’t physically interacting they are paying attention to each other. This is the beginning of the desire to be with other children.
4. Associative Play: At around age four or five, children become more interested in each other than in toys and begin to interact more. In this stage children start asking questions and talking about the different activities they are engaging in. They realise they have similar goals in play such as building a tower or playing with cars.
5. Social Play: In this stage children are starting to socialise more. They begin to share ideas and follow certain rules in a game. They slowly learn the definition of teamwork. They get to engage in basic social skills and interests begin to lead social interactions.
Stuck in a job without a pay rise? Here's what to do
Chris Greaves, the managing director of Hays Gulf Region, says those without a pay rise for an extended period must start asking questions – both of themselves and their employer.
“First, are they happy with that or do they want more?” he says. “Job-seeking is a time-consuming, frustrating and long-winded affair so are they prepared to put themselves through that rigmarole? Before they consider that, they must ask their employer what is happening.”
Most employees bring up pay rise queries at their annual performance appraisal and find out what the company has in store for them from a career perspective.
Those with no formal appraisal system, Mr Greaves says, should ask HR or their line manager for an assessment.
“You want to find out how they value your contribution and where your job could go,” he says. “You’ve got to be brave enough to ask some questions and if you don’t like the answers then you have to develop a strategy or change jobs if you are prepared to go through the job-seeking process.”
For those that do reach the salary negotiation with their current employer, Mr Greaves says there is no point in asking for less than 5 per cent.
“However, this can only really have any chance of success if you can identify where you add value to the business (preferably you can put a monetary value on it), or you can point to a sustained contribution above the call of duty or to other achievements you think your employer will value.”
MATCH INFO
Wales 1 (Bale 45 3')
Croatia 1 (Vlasic 09')