Nov. 20 (Bloomberg) -- Shuaa Capital PSC sank to the lowest in more than eight years after the investment bank controlled by Dubai’s ruler reported a quarterly loss and said it plans to cut jobs as it moves away from retail brokerage.
The shares tumbled 7.4 percent to 69 fils, the lowest since May 2003, at the 2 p.m. close in Dubai. The stock has slumped 45 percent so far this year.
The second phase of a cost-reduction program will include a “reduction of administrative expenses, the amalgamation and further alignment of departments, a recalibration of budgets and a significant headcount reduction, which is primarily related to repositioning the brokerage business and associated operational and administrative expenses,” Shuaa said in a statement to the Dubai bourse.
The United Arab Emirates’ largest investment bank has reshuffled staff over the past year amid the global economic slowdown. Shuaa on Nov. 17 said it had a third-quarter loss of 156.2 million dirhams ($42.5 million) after making valuation adjustments and booking provisions. The company in May said it would eliminate 39 jobs, or 11 percent of its full-time employees.
The bank plans to expand its asset management and advisory business in Abu Dhabi, Saudi Arabia and Kuwait and will focus on high net-worth family businesses and small to medium-sized companies as well as institutional clients, newly appointed Chief Executive Officer Michael Philipp said in October.
To contact the editor responsible for this story: Shaji Mathew at email@example.com