Monday, Mar 04, 2013

Dubai

Dubai’s benchmark fell to a two week low, dragged down by Arabtec and Emaar Properties. The index closed 1.89 per cent down to 1899.10.

Arabtec tumbled 9.96 per cent to Dh2.17—it has fallen 27 per cent in the past three sessions--as investors continued to sell the shares of the construction major which has planned to raise $1.8 billion in capital via a rights share route that is expected to have a dilute effect on the share price.

“Investors remain concerned over the dilutive impact of any new convertible bond,” Julian Bruce, Dubai-based head of institutional trading at EFG-Hermes Holding SAE told Bloomberg on Sunday. “Greater detail of any issue, including conversion price, will be required to afford any degree of comfort.”

Emaar, the bellwether stock on DFM, retreated the most in almost a week, shedding 2.55 per cent to end at Dh5.34. It has been the best performing stock this year, surging 42 per cent.

“Against a discouraging external backdrop, recent buyers sat on the sidelines and the stock took a long overdue breather,” Bruce said.

Other losers on the day included Air Arabia and Dubai Financial Market.

Abu Dhabi:

Abu Dhabi benchmark fell yesterday, a day after the shareholders of the capital city’s biggest real estate companies approved their merger. The Abu Dhabi Securities Index closed 0.32 per cent down to close at 3027.03 with Aldar Properties and Sorouh Real Estate retreating.

On Sunday, after the market closed, came in the news that Aldar and Sorouh merger had been given the go ahead with the latter’s assets to be transferred to the former and 1.288 Aldar shares to be issued for every Sorouh share. Aldar fell 5.16 per cent to Dh1.47 and Sorouh declined 3.19 per cent to 1.82.

Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group, sees this decline as more of a “speculative profit taking” after Monday’s merger approval.

Other major stocks to decline were Etisalat, Abu Dhabi National Energy Company, which fell 0.75 per cent and 0.98 per cent respectively.

First Gulf Bank, among the top five stocks with the highest turnover, marginally rose, 0.37 per cent to end at Dh13.50.

Of the 33 stocks that traded yesterday, 11 rose, 15 declined and seven remained unchanged.

By Gaurav Ghose Financial Features Editor

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