(MENAFN- Khaleej Times) The Dubai Financial Market benchmark index managed a 2.
Investors are in a wait-and-see game for Arabtec. — Kt file photo
The DFM index added 115 points and closed at 4724.95 points. Arabtec the builder of the world’s tallest tower lost 1.79 per cent to Dh4.38 — the lowest since July 14. It lost 9.9 per cent the maximum allowed in a single day on the first trading day of the week.
The board of Arabtec will meet on Thursday to review its second-quarter earnings statement and other reports and recommendations the company announced in a statement to the DFM on Monday. The Arabtec meeting will take place at the Abu Dhabi offices of its parent company International Petroleum Investment Co which owns 18.94 per cent of the Dubai builder. The statement did not clarify any details of the reports and recommendations to be reviewed
The builder’s stocks have been swinging wildly in recent weeks in response to speculation about the company’s future after the sudden resignation of chief executive Hasan Ismaik in mid-June.
Investors hope Aabar will buy at least part of the 28.85 per cent stake owned by Ismaik. Aabar said on Sunday that it was studying different options for its investment in the Dubai builder but that any talks on a deal would remain confidential; it did not elaborate. Arabtec’s shares were halted from trading at the end of last week pending clarification of its ownership. Aabar is in talks to buy at least half of a 28.9 per cent stake held by Ismaik a person with knowledge of the situation told Bloomberg on July 15. Aabar is negotiating a price of Dh5 to Dh6 a share the person said.
“Retail investors were expecting Aabar’s confirmation of buying Ismaik’s stake” Nayal Khan head of institutional sales and trading at Naeem Holding brokerage in Dubai said. “They didn’t get that and now they are in doubt whether a deal will be reached and this is the reason for the selldown.”
The builder’s stock has risen 68 per cent so far this month after chairman Khadem Al Qubaisi said on July 2 Aabar may increase its holding. Arabtec’s stock was the most-traded on Dubai’s benchmark index on Monday as volume rose to 2.7 times the three-month daily average. Dubai’s exchange allows stocks to decline a maximum of 10 per cent a day. Other trading toppers include Gulf Finance House with 323 million shares Union Properties with 279.2 million shares Deyaar Development with 73.1 million shares and DSI with 54.5 million shares.
— abdulbasitkhaleejtimes.com
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