Investors dump Tamweel shares as DFM, ADX drop

Investors dump Tamweel shares as DFM, ADX drop

DUBAI - Investors yesterday dumped the shares of Tamweel, becoming the biggest loser on the Dubai Financial Market (DFM) General Index, which also dropped, following reports of a former official being investigated for alleged financial wrongdoing.

Tamweel, the country’s biggest mortgage lender, plunged 4.1 per cent to Dh5.86 on DFM as the Dubai prosecution office is investigating former chief executive officer Adel Al Shirawi, over s u s p i c i o n o f embezzlement. The company has already fell more than 20 per cent this month.

“Tamweel is suffering s i m p l y b e c a u s e o f that...with negative sentiment prevailing, confidence is low and risk tolerance becomes lower,” said Mohamed Alami, at Naeem Shares & Bonds, in a Reuters report.

“Share allocations will be to those stocks that are solid in fundamentals and good news.” DFM slid 0.6 per cent to close at 4,988.82, falling for a seventh time in eight days as investors continued to sell shares of Tamweel.

The Abu Dhabi Securities Market (ADX) General Index lost 0.02 per cent at 4,533.83 points, weighed down mostly by the insurance and energy stocks. Islamic Arab Insurance Co, the world’s biggest Islamic insurer, slumped over two per cent to Dh2.43 as second-quarter profit rose 24 per cent on higher income from u n d e r w r i t i n g and investments. It said in a statement that net profit grew to Dh42.9 million ($11.7 million), or Dh0.040 a share, from Dh34.5 million, or Dh0.030, for a year ago.

 

In the Dubai trading the i n s u r a n c e s e c t o r declined 1.6 per cent, or 59.74 points, to close at 3,770.03 points while the energy s e c t o r decreased 1.1 per cent at 337.02. About 127.3 million shares, valued at Dh492 million, traded on DFM while shares value at ADX reached Dh349.6 m i l l i o n .