Dubai Shares Retreat Led by Arabtec After Loss; Qatar Gains

Dubai’s benchmark stock index fell to the lowest in almost a week after Arabtec Holding Co. (ARTC) reported a second-quarter loss that missed analysts’ estimates. Qatari shares advanced after Industries Qatar (IQCD)’s profit rose.

Shares of Arabtec, the biggest construction company in the United Arab Emirates, decreased 4 percent. Emaar Properties PJSC (EMAAR), developer of the world’s tallest skyscraper, declined for a third day. The DFM General Index (DFMGI) fell 0.1 percent to 1,555.65 at the close in the emirate, the lowest since Aug. 2, taking the past three day’s drop to 1.3 percent. Qatar’s QE Index increased 0.4 percent, while the Bloomberg GCC 200 Index (BGCC200) rose 0.1 percent.

Arabtec, which has the third-heaviest weighting on the stock gauge, said today the loss attributable to owners of the parent was 11.6 million dirhams ($3.2 million) after a profit of 29 million dirhams a year earlier. The average estimate of six analysts was for a profit of 73 million dirhams, according to data compiled by Bloomberg. The shares fell the most since May 13 to 2.9 dirhams, trimming this year’s rally to 92 percent.

“The market is reacting to Arabtec’s loss,” said Nabil Rantisi, managing director of brokerage at Abu Dhabi-based Menacorp. “The company has landed new projects, but hasn’t monetized them yet.”

Arabtec said in June that along with TAV Insaat of Turkey and others it won a contract valued at about $3 billion to build a terminal at Abu Dhabi Airport. Abu Dhabi government-controlled Aabar Investments PJSC raised its stake in Dubai-based Arabtec this year to 21.6 percent, prompting a surge in the shares.

Oil Drops

About 119 million shares traded in Dubai today, compared with a 12-month daily average of about 139 million. The Islamic holy month of Ramadan, when Muslims fast from sunrise to sunset and business activity slows, is under way.

Emaar dropped 0.9 percent to 3.35 dirhams, the lowest since July 29.

Oil slid from the highest close in more than two months as investors sold contracts on speculation that recent gains were excessive amid signs of weakening demand in the U.S, the world’s biggest consumer of crude. Crude for September delivery decreased as much as 0.9 percent to $92.82 a barrel by 8:34 a.m. in New York. Gulf Arab oil exporters, including Qatar and the U.A.E., supply about a fifth of the world’s oil.

Qatar’s QE Index (DSM) rose to 8,402.19, the highest since May. Industries Qatar, the country’s second-biggest company by market value, advanced 1.4 percent to 137.4 riyals after second-quarter profit climbed about 3 percent, according to Bloomberg calculations based on first-half results provided by the company.

Abu Dhabi’s ADX General Index (ADSMI), Oman’s MSM 30 Index (MSM30) and Kuwait’s gauge advanced 0.1 percent. Saudi Arabia (SABIC)’s Tadawul All Share Index lost 0.1 percent, trimming the gain for the week to 0.9 percent. Neighboring Bahrain’s benchmark stock index tumbled 1.5 percent today to 1,074.68, the lowest level since at least July 2004 when Bloomberg started tracking the gauge.

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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