Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Bahrain- Arabtec "sacks" hundreds of employees stocks plunge  Join our daily free Newsletter

MENAFN - Khaleej Times - 24/06/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) Arabtec's stocks fell 10 per cent during trading on monday reaching its lowest level since march.

shares of the uae’s largest construction firm arabtec on monday tumbled to its lowest since march after the company fired hundreds of employees bloomberg reported citing people familiar with the matter.

the dubai contractor has laid off a significant number of employees in the wake of chief executive hasan ismaik’s departure last week sources said adding: “shohidul ahad-choudhury arabtec’s head of mergers and acquisitions and a former deutsche bank executive was among those dismissed.”

it is reported that large numbers of staff including at least two senior executives have departed the company since ismaik resigned. arabtec didn’t confirm the staff lay-off.

the contractor has plunged 48 per cent so far this month and 53 per cent from a record dh7.40 in may. abu dhabi state-run aabar investments cut its stake to 18.85 per cent as of june 11 from 21.57 per cent stoking speculation the builder was losing government backing.

investors are selling arabtec because there’s uncertainty surrounding its governance and ability to “execute their pipeline of projects effectively with so much internal strife” according to ramez merhi director of asset management at dubai-based al masah capital.

“this looks as if it could have been a fight for control of the company and aabar won.”

ismaik is still the single-largest shareholder in arabtec with an nearly 29 per cent stake. the former ceo said on june 18 that he would consider selling his shares in the company if he gets an offer from the government. arabtec board member mohamed al fahim was appointed acting ceo following ismaik’s departure.

“the company must be forced to come up with an announcement to ease tension among the investors mainly the small investors” wadah al taha chief investment officer of dubai-based al zarooni group said.

— abdulbasitkhaleejtimes.com

dfm hits 3-month low

abdul basit

dubai’s bourse on monday sank to its lowest level in more than tree months with its plunge led by property stocks — especially arabtec as the largest listed construction company laid off a significant number of employees in the wake of former chief executive officer’s hasan ismaik’s departure last week.

the dfm general index dropped by 4.3 per cent to 4296 points the lowest close since march 19 and a second day falling. arabtec fell by nearly 10 per cent after dismissing staff including senior managers bloomberg reported citing sources.

property giant emaar properties which has the largest weighting on the benchmark index was the biggest decliner by index points retreating 4.9 per cent. emaar fell to dh8.80.

“there is confusion in the market and i call it ‘arabtec fever’” wadah al taha chief investment officer of dubai-based al zarooni group told bloomberg. “the sentiment is very weak and investors weren’t prepared for the situation getting so much worse” al taha said adding that in a worst case scenario the index could fall to 3800.

the dfm witnessed a total of 10686 trades generating 598 million shares volume and valuing dh1.47 billion.

overall 31 stocks attracted trades. twenty-six stocks declined and only four appreciated in terms of value. arabtec became the top trading volume contributor with 132 million shares followed by gulf finance house 81 million shares and union properties 75 million shares. the dfm soared this year amid a real estate recovery in the emirate before the uae’s central bank said on june 8 there are signs the property market is overheating.

“dubai’s gauge entered a bear market after it plunged 20 per cent since a peak in may. two of the regularly traded stocks in the 30-member benchmark gauge were trading above their 50-day moving average price... that’s the fewest since july 2012 and compares with a one-year peak of 23 in december” according to data compiled by bloomberg.

arabtec which has the fifth-highest weighting on dubai’s benchmark index has dropped 48 per cent in june. its shares tumbled to dh3.46 the lowest since march 17.

— abdulbasitkhaleejtimes.com


 


Khaleej Times




  MENA News Headlines
 Jul 28 2016 - UAE, China arrange for extensive mutual projectsMENAFN
(MENAFN) The UAE and China have created a united strategic investment fund worth a whopping USD10 billion as the 2nd largest economy chases its ambition to reestablish Silk Road trade routes.The ...

 Jul 28 2016 - Oman, Iran agree to invest jointly in mining industryMENAFN
(MENAFN) Oman and Iran have revealed recently great interest in cooperating as they have great potentials to further grow joint collaboration in the mining sector.In accordance, both nations intend ...

 Jul 28 2016 - Saudi sees robust retail construction boom in H1MENAFN
(MENAFN) Saudi Arabia has been seeing a retail building explosion even as oil, the kingdom's dominant source of revenue, severely plunges, based on reports.Overseas and local firms are betting ...

 Jul 28 2016 - Bahrain to apply crucial investments worth over USD30bMENAFN
(MENAFN) Bahrain has been recently applying a comprehensive well-studied program of structural economic and fiscal reforms to further strengthen its long-term development, according to the available ...

 Jul 28 2016 - The Lubricant Market in South Africa has been Expected to Reach USD 1.8 Billion by 2020: Ken ResearchMENAFN Press
(MENAFN Press) Ken Research announced its latest publication on "South Africa Lubricant Market Outlook to 2020 - Inclining Vehicle Sales and Growing Manufacturing and Mining Sector to Drive Future ...

 Jul 28 2016 - Kuwait offers aid to Rwanda without hesitationMENAFN
(MENAFN) A loan contract has been inked between the Republic of Rwanda and the Kuwait Fund for Arab Economic Development (KFAED), according to the released reports.The loan stands at USD15.3 million, ...

 Jul 28 2016 - Dubaiprint.com opens the 1st premium print lounge at Dubai Design District (d3)MENAFN Press
(MENAFN Press) Dubaiprint.com, competency of NDIGITEC and the first professionally integrated web-to-print with a customized unique platform for professional and personal users in the Middle East, ...

 Jul 28 2016 - Bahrain seeks massive cuts in spending to lift economyMENAFN
(MENAFN) Bahrain has approved a proposed strategy to reduce government expenditures by 30 percent and improve efficiency across all entities, based on recent reports.The proposed plan is in line with ...

 Jul 28 2016 - Kuwait- MoH announces work timings of all clinics during RamadanArab Times
(MENAFN - Arab Times) KUWAIT CITY, June 7: Director of Primary Health Department at Ministry of Health Dr Rehab Al-Watyan has declared the work timings of all clinics throughout Kuwait during the ...

 Jul 28 2016 - Kuwait- MP praises action on fake degreesArab Times
(MENAFN - Arab Times) KUWAIT CITY, July 24: MP Kamel Al-Awadhi praised the actions taken by Minister of Education Dr Bader Al-Essa against those who hold fake academic certificates as he not only ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help