Dubai index down 0.2% as Union Properties slumps on Q2 losses

Dubai’s benchmark index closed lower by 0.2 percent at 3,580 points on Tuesday, paring losses towards the end of trading as Union Properties shares recovered from early-session tumble of nearly 10 percent.

Union Properties ended down 4.3 percent at AED 0.82, after posting the biggest-ever loss of nearly AED 2.3 billion in Q2 2017. The developer had made a profit of AED 71.7 million in Q2 2016.

Union Properties wrote down the value of its investment property portfolio by AED 2.07 billion. The company said it has identified “suspected irregularity” with respect to a transaction recorded in 2015, and also found that the available land on which it can develop its Motor City community in Dubai is smaller than recognized earlier.

Among other decliners were GFH Financial (down 3.3 percent, AED 1.75), and Arabtec Holding (down 0.3 percent, AED 3.23).

Emaar Properties rose 0.1 percent to AED 8.26.

In neighboring Abu Dhabi, the main index slipped 0.2 percent to close at 4,471 points.

Rest of the region was also mainly negative, with Qata’s QE index down 0.6 percent and Kuwait’s price index down 0.2 percent.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com