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 three 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
 Jan 31 2015 - Vodafone Qatar revenue up 21 percent in 9MMENAFN
(MENAFN) Vodafone Qatar's said its total revenue grew by 21 percent to USD474.59 billion for the nine months ended December 31, 2014, The Peninsula Qatar reported.The company's mobile customer base ...

 Jan 31 2015 - Qatar Airways to acquire 10 percent of IAGMENAFN
(MENAFN) Qatar Airways announced that it has bought nearly 10 percent of the parent company of British Airways and Spain's Iberia, deepening wealthy Qatar's business ties to Europe, Arab News ...

 Jan 31 2015 - Saudi RCJY signs three deals worth USD138.25mMENAFN
(MENAFN) Chairman of the Royal Commission for Jubail and Yanbu (RCJY) signed three contracts worth USD138.25 million to provide essential equipment and develop industrial zones, Arab News ...

 Jan 31 2015 - Saudi- Outspoken prince to launch pan-Arab news channelThe Peninsula
(MENAFN - The Peninsula) An outspoken, billionaire Saudi prince will on Sunday launch a pan-Arab satellite news channel aimed at challenging established networks in the region.Prince Alwaleed bin ...

 Jan 31 2015 - Qaeda in Yemen says France top enemyThe Peninsula
(MENAFN - The Peninsula) The ideological leader of Yemen-based Al-Qaeda in the Arabian Peninsula (AQAP) said Friday that France had surpassed the United States as the top enemy of Islam.With the ...

 Jan 31 2015 - Qaeda group launches assault on Western-backed Syria rebelsThe Peninsula
(MENAFN - The Peninsula) Al-Qaeda's affiliate in Syria battled Western-backed rebels Friday as the jihadists pressed their bid to seize control of northern areas, a monitoring group and rebels ...

 Jan 31 2015 - Iraq- Air strike kills IS 'chemical weapons expert'The Peninsula
(MENAFN - The Peninsula) A US-led coalition air strike killed a chemical weapons specialist with the Islamic State group in Iraq who once worked for Saddam Hussein, US military officers said ...

 Jan 31 2015 - FM honours Qatari missionsThe Peninsula
(MENAFN - The Peninsula) The second annual general meeting of heads of Qatar's diplomatic, consular and representative missions abroad ended in the presence of the Foreign Minister H E Dr Khalid bin ...

 Jan 31 2015 - Qatar- Demand for books declines as craze for movies risesThe Peninsula
(MENAFN - The Peninsula) The charm of printed words is fading away in Qatar and the craze for movies is peaking, according to report released by the Ministry of Development Planning and ...

 Jan 31 2015 - Qatar- HBKU hosts graduate students from USThe Peninsula
(MENAFN - The Peninsula) Hamad Bin Khalifa University (HBKU), a member of Qatar Foundation for Education, Science and Community Development (QF), hosted 25 faculty, staff and graduate students from ...

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