Stock News: Arabtec Tumbles, Weighs On Dubai
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Stock News: Arabtec Tumbles, Weighs On Dubai

Stock News: Arabtec Tumbles, Weighs On Dubai

Arabtec tumbled its daily 10 per cent limit, dragging down the entire Dubai stock market, where the main index dropped 5.4 per cent.

Gulf Business

Shares in Dubai builder Arabtec plunged in early trade on Sunday after Aabar Investments, one of its major shareholders, did not confirm a report which said Aabar was in talks to increase its stake.

Arabtec tumbled its daily 10 per cent limit, dragging down the entire Dubai stock market, where the main index dropped 5.4 per cent.

Arabtec jumped last week on speculation that Aabar would raise its stake from the current 18.94 per cent. The bourse suspended the stock on Thursday after Bloomberg reported that Aabar was in talks to buy at least part of the 28.85 per cent stake owned by Arabtec’s former chief executive Hasan Ismaik, who abruptly resigned last month.

But Aabar issued a statement on Sunday that did not confirm or deny the report, saying it was studying different options for its stake and that any talks on a deal would remain confidential. Disappointed retail investors dumped Arabtec as it resumed trading.

Other Dubai stocks also fell sharply. Developer Union Properties was down 9.2 per cent, contractor Drake and Scull slid 6.2 per cent, and bourse operator Dubai Financial Market fell 5.6 per cent after it announced it had more than tripled its second-quarter net profit.


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