DP World set fairly after price correction



Since a correction last month when concerns over the euro zone were at their peak in the region, shares have risen in the ports operator DP World have risen 19 per cent. Analysts say the stock is attractively valued and still could rise another 30 per cent. Even in a difficult economic climate, the company generated US$1 billion in earnings for the year to the end of March.

"It is a solid company fundamentally speaking," said Kareem Murad, an analyst at Shuaa Capital based in Dubai. As the global trade cycle is showing signs of recovery from last year, which was a bad one for the industry, volume growth is coming back strong. The company said volumes for the first quarter grew by 6 per cent. DP World stock has been discounted against its global peers because of its association with its parent company Dubai World, which owns 80 per cent.

The port operator's stock is also affected by macroeconomic variables, as last month's correction illustrated. On the flip side, any increase in trade activity or signs of global economic recovery, such as those seen by markets in recent days, bode well for the stock. DP World's long-delayed listing on the London Stock Exchange could be completed by October, after it reports first-half earnings in September, said the Deutsche Bank analyst Nabil Ahmed.

If completed, the listing could provide the second liquidity boost to the stock within months. The merger of NASDAQ Dubai and the Dubai Financial Market, which should be finalised soon, would be the first. That process will provide additional liquidity from regional investors. The London listing would raise the stock's visibility among international investors. In its note this week, Deutsche Bank even predicted an LSE listing could be a catalyst to get DP World included on the FTSE 100, the closely watched index of the largest publicly traded European companies.

halsayegh@thenational.ae

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Adele: The Stories Behind The Songs
Caroline Sullivan
Carlton Books

The National's picks

4.35pm: Tilal Al Khalediah
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6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
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The specs: 2019 Infiniti QX50

Price, base: Dh138,000 (estimate)
Engine: 2.0L, turbocharged, in-line four-cylinder
Transmission: Continuously variable transmission
Power: 268hp @ 5,600rpm
Torque: 380Nm @ 4,400rpm
Fuel economy: 6.7L / 100km (estimate)

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Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

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Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4

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Fixtures All matches start at 9.30am, at ICC Academy, Dubai. Admission is free

Thursday UAE v Ireland; Saturday UAE v Ireland; Jan 21 UAE v Scotland; Jan 23 UAE v Scotland

UAE squad Rohan Mustafa (c), Ashfaq Ahmed, Ghulam Shabber, Rameez Shahzad, Mohammed Boota, Mohammed Usman, Adnan Mufti, Shaiman Anwar, Ahmed Raza, Imran Haider, Qadeer Ahmed, Mohammed Naveed, Amir Hayat, Zahoor Khan