Telling tumble for Tamweel

Dubai's stock market declined yesterday, weighed by Tamweel, after the Islamic mortgage company reported a 33 per cent decline in first quarter profit.

The DFM General Index yesterday declined 0.5 per cent to 1,480.18. Photo by Jeff Topping / The National

The Dubai Financial Market (DFM) declined yesterday, weighed down by Tamweel, after the Islamic mortgage company reported a 33 per cent decline in first-quarter profit.

Tamweel's shares fell 3.1 per cent to Dh1.24. The DFM General Index declined 0.5 per cent to 1,480.18. Net income at Tamweel declined to Dh18.5 million from Dh27.2m last year.

"The drop is really significant," said Wadah Al Taha, the chief investment officer at the Dubai investment company Al Zarooni Group. "There was a lot of hope among investors about the company's large market share, but it doesn't reflect the financial statements. Tamweel needs more time to heal and recover, and we need to be more realistic."

Other property-related stocks also declined.

Emaar Properties, the region's biggest developer, declined 0.3 per cent to Dh3.04. The district cooling company Tabreed dropped 2.3 per cent to Dh1.23. Arabtec Holding, the region's biggest contracting company, fell 1.4 per cent to Dh2.82.

On the Abu Dhabi exchange, Aldar Properties, the developer behind Yas Island, fell 0.9 per cent to Dh1.09. Sorouh Real Estate, the developer behind Reem Island's Sun and Sky Towers, declined 0.9 per cent to Dh1. The Abu Dhabi Securities Exchange General Index slipped 0.3 per cent to 2,465.41.

Elsewhere in the region: Kuwait's measure rose 0.2 per cent to 5,868.20; Bahrain's slipped 0.1 per cent to 1,112.63; Oman's MSM 30 Index fell 0.7 per cent to 5,456.06; and Qatar's QE Index slipped 0.2 per cent to 8,249.46.

The Saudi Tadawul All-Share Index declined 0.8 per cent to 6,659.58.

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