Arabtec Soars After Builder Says No Talks to Leave Dubai MarketSarmad Khan
Arabtec Holding Co. rose, breaking a four-day losing streak, after the United Arab Emirates’ biggest publicly traded construction company said it hasn’t asked to leave the Dubai bourse.
The shares rose 11 percent, the most in a month, to 5 dirhams at the close. The stock earlier declined as much as 4.2 percent. Arabtec has never discussed taking its shares off the market with the regulator, the company said in an e-mailed statement today. Investor speculation it would remove its shares helped spur a 30 percent decline this week through yesterday.
“The concerns over Arabtec delisting were addressed today by the management, which improved the sentiment and removed potential concerns for investors,” Tariq Qaqish, who oversees the equivalent of $136 million as the head of asset management at Dubai-based Al Mal Capital PSC, said by phone.
Property and construction companies have led an equities rally in Dubai, with the benchmark almost doubling in value in the last 12 months amid an economic rebound. Arabtec, whose shares jumped 144 percent so far this year, is trading at an estimated price-to-earnings ratio of 39-times, compared with about 17-times for Dubai’s index, according to data compiled by Bloomberg.
Abu Dhabi-controlled Aabar Investments PJSC, the builder’s second-biggest shareholder, cut its holding in Arabtec to 18.85 percent from 21.57 percent, according to a stock market statement after the close of trading yesterday.
Aabar consolidated its Arabtec shares under a single holding. The stake had previously been held by its energy, petroleum and real estate investment units, according to data compiled by Bloomberg.
Dubai’s benchmark index gained 3.7 percent to 4,836.86, the biggest jump since May 29.