A free fall? Arabtec falls another 10% in first 20 minutes of trading
After swinging wildly this month in response to Arabtec’s gyrations, the Dubai index is down 22 percent from its multi-year peak in mid-May
Click here to add Aabar Investments as an alert
Disable alert for Aabar Investments,
Click here to add Arabtec as an alert
Disable alert for Arabtec,
Click here to add Dubai as an alert
Disable alert for Dubai,
Click here to add Hasan Ismaik as an alert
Disable alert for Hasan Ismaik,
Click here to add The Abu Dhabi Securities Exchange as an alert
Disable alert for The Abu Dhabi Securities E ...
Shares in Arabtec, the Dubai contractor whose value has dropped by more than 50 per cent in six weeks, fell by its daily limit of 10 per cent to reach AED 2.61 ($0.71) in early trading on the Dubai Financial Market (DFM) on Monday morning.
he stock pulled the overall index down by 3.72 percent. The DFM is down by 27 percent from its peak in May.
Other stocks related to the construction industry followed suit. Union Properties was down by 9.55 percent and Drake & Scull International had fallen by 8 percent by 10.30am.
Bellwether stock Emaar Properties fell by 2.29.
The collapse marks a continuation of the builder’s downward trend on the Dubai bourse. Shares in Arabtec dropped by 6.45 percent on Sunday, while the index slid by 2.35 percent.
After swinging wildly this month in response to Arabtec’s gyrations, the Dubai index is down 22 percent from its multi-year peak in mid-May, though still up 25 percent year-to-date. With the Ramadan lull and few fresh, positive catalysts on the horizon, the market will stay vulnerable to profit-taking, fund managers believe.
The Arabtec share collapse followed a decision by major shareholder Aabar Investments to reduce its stake in Arabtec earlier this month, the resignation of the CEO and top shareholder Hasan Ismaik last week and news of wide scale job cuts.
The Abu Dhabi Securities Exchange dropped by 1.1 percent during the same period.
- Al Tayer bucks the US department store trend with Bloomingdale's Kuwait opening
- Gulf Islamic banks set to outperform conventional banks for second year: Moody's
- Jordan secures EU finance for socioeconomic and environmental programs
- Same-day service deliveries in GCC an untapped market: Wing CEO
- Will terror attacks damper Arabs' appetite for European holidays?
- Hubris and greed: the toxic combination that drove the rise and fall of Arabtec?
- Taming the monster: UAE regulator to tighten supervision of financial markets over Arabtec's debacle
- Arabtec takes lion's share of Dubai Financial Market, restricts trading in other shares
- A bottomless pit? Suspended Arabtec stocks tumble further, drag Dubai's main index down
- Will Falling House Prices, Sink The Pound?