MARKET TALK: Arabtec Shares Fall on 2Q Earnings Disappointment

Wednesday, Aug 08, 2012

0626 GMT [Zawya Dow Jones]--Arabtec Holding shares fall 2.7% to AED2.94 early in the Dubai market session. The company posted a second-quarter net loss of AED11.6 million, compared with a profit of AED29 million a year earlier. The market is likely to be dissatisfied with these results and they are likely to weigh on the share price performance over the session, analysts at EFG Hermes say. "While we initially believe that Arabtec is unlikely to post any significant operational improvement during 3Q2012, the weak 2Q2012 results could trigger a longer downward rerating." EFG reiterates its sell rating on the stock; fair value of AED2.

(nikhil.lohade@dowjones.com; Twitter: @ZDJnews)

(END) Dow Jones Newswires

08-08-12 0626GMT