Arabtec slump continues as DFM falls

Tuesday, Mar 05, 2013

Dubai: Dubai’s benchmark DFM General Index fell to a four week low as the region’s biggest builder, Arabtec, extended its decline since it announced plans to raise $1.8 billion in capital via the convertible bonds that is likely to dilute shareholder’s positions.

Arabtec Holding’s share price dropped 3.23 per cent to close at Dh2.10, which according to Bloomberg, was the lowest level since February 2012. The company has slumped 29 per cent since its announcement of raising capital last week. It was the highest traded stock yesterday with a turnover of Dh104.38 million.

The Dubai index shed 1.18 per cent to end at 1876.62.

Emaar Properties, the stock with the second highest turnover, fell 0.37 per cent to end at Dh5.32. On the day, there were only two gainers, global interior contracting company Depa, which jumped 2.56 per cent to $0.400 and Islamic Arab Insurance Company (Salama), which rose 0.31 per cent.

Abu Dhabi

Declining for the fourth consecutive session, Abu Dhabi share index slipped 0.22 per cent to close at 3019.77. The index had reached a 39-month high of 3056.39 last Wednesday.

Turnover of shares traded declined slightly yesterday to Dh184.49 million from Monday’s Dh189.77 million. Of the 35 traded stocks, 11 rose, 20 retreated and four remained unchanged.

The two big real estate companies Aldar Properties and Sorouh Real Estate, the merger proposal of which were approved on Sunday, fell again yesterday. Aldar closed 2.04 down to Dh1.44 and Sorouh shed 2.76 per cent to close at Dh1.76.

Eshraq Properties also declined, ending tumbling 8.20 per cent to Dh0.56. Dana Gas, the second most traded stock, lost 4.08 per cent to close at Dh0.47.

First Gulf Bank and Etisalat, among the top five turnover stocks, ended in positive territory.

By Gaurav Ghose, Financial Features Editor