GFH shares gain after return to profit

Shares in GFH were the hottest stock traded in the UAE yesterday after the company announced its return to profit for last year.

GFH, which last year said it was transforming itself from an investment bank to a financial group, on Sunday reported an annual profit attributable to shareholders of US$11 million for 2014, compared with a loss of $18m for 2013. “We have taken steps in 2014 to recapitalise our balance sheet, strengthen our structure and emerge as a financial group,” said Ahmed Al Mutawa, GFH’s chairman.

“We embarked upon a new strategy to create a more stable financial position through increasing the capital and enhancing the balance sheet. [In the meantime] focusing on acquisitions to enhance the financial position of the group and our co-investors through steady streams of income and opportunities for strong upside potential at exit.”

Shares for the Bahrain-based company, listed on the Dubai Financial Market, rose 7.8 per cent, the stock’s largest daily gain in more than a month, closing the day at 30.3 fils.

About 371 million GFH shares changed hands yesterday on the DFM, accounting for nearly three-quarters of the total volume on the bourse.

The DFM General Index itself was little changed, ending the day down 0.2 per cent at 3,832.19. Gains by Damac Properties and DFM were cancelled out by declines in Air Arabia, UPP and Deyaar Development.

In the capital, the Abu Dhabi Securities Exchange General Index ended the day down 0.3 per cent at 4,630.36 as financial stocks edged down.

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