Record losses by Arabtec Holding weighed heavily on UAE stocks yesterday, making Dubai’s headline index the worst-performing worldwide.
Arabtec shares plunged to their daily loss limit in the early minutes of trading yesterday, after the construction firm announced its annual loss of Dh3.4 billion, stunning analysts. Shares in the company, which also announced plans for a Dh1.5bn rights issue, ended 9.9 per cent lower at Dh1.19, their lowest level in nearly three months.
“A big negative surprise on the quarterly results along with a rights issue announcement got the market selling at any price,” said Hani Konquar, the team leader for Mena equity sales and trading at Mubasher Financial Services in Dubai. “As a retail driven and liquid stock, the impact got to other shares in the sector to cover possible margin calls.”
Fellow construction firm Drake & Scull International, expected to release full-year results in the coming days, fell by 10 per cent to 48 fils.
Emaar Malls was the pick of just three gainers, closing up by 1.2 per cent at Dh2.61.
The Dubai Financial Market General Index fell by more than 2 per cent around the middle of the day, before regaining ground to finish 1.8 per cent lower at 3,637.55.
Shares in Abu Dhabi were more muted, closing 0.1 per cent lower at 4,563.98, dragged lower by FGB. Eshraq Properties plunged 10 per cent to a two-month low of 99 fils, after the real estate firm announced a Dh575 million annual loss on Sunday.
Such falls were partially offset by gains from Etisalat, NBAD and ADCB.
Adnic shares rose 7.5 per cent to Dh2.58, after the insurer posted its first annual profit since 2013.
jeverington@thenational.ae
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