Dubai Stock Gains Dissolve as Arabtec PlungesSarmad Khan and Dana El Baltaji
Dubai stocks dropped, wiping out most of their gains from the previous three days, led by real estate-related companies Emaar Properties PJSC and Arabtec Holding Co. Kuwaiti shares rose.
The DFM General Index fell 2.3 percent to 4,489.90 at the close, the biggest decline among markets in the Middle East, following a 2.8 percent advance in the previous three trading sessions. Emaar, developer of the world’s tallest tower, slid
3.4 percent, while Arabtec, the United Arab Emirates’ biggest publicly traded construction company, plummeted 9.9 percent. Kuwait’s SE Price Index gained 1.2 percent, the most since October.
“It’s a bit of profit taking and no one wants to hold a position for more than a day right now,” Nayal Khan, the head of institutional sales and trading at the Naeem Holding brokerage in Dubai, said by e-mail. “It’s all very jittery at the moment and there’s no positive catalyst to take us higher.”
Dubai’s shares have dropped 12 percent so far this month, led by a 43 percent decline in Arabtec. The stock, which has the fifth-highest weighting on the index, retreated as Abu Dhabi state-run Aabar Investments PJSC cut its stake to 18.85 percent as of June 11 from 21.57 percent, and it’s chief executive officer resigned. Former CEO Hasan Ismaik still holds almost 29 percent of the company’s shares.
Arabtec’s shares sank to 3.84 dirhams, Emaar’s fell to 9.25 dirhams.
Kuwait’s shares increased after Fitch Ratings affirmed the country’s AA rating, citing its sovereign foreign assets, which rose to 200 percent of gross domestic product in 2013, more than any other rated country. The Kuwait SE Price Index advanced 1.2 percent to 7,024.26.
Egyptian shares declined for a second day, with the EGX 30 Index losing 0.3 percent. The stock exchange said a 1.83 billion Egyptian-pound ($256 million) offer led by billionaire Naguib Sawiris to acquire a 20 percent stake in Cairo-based investment bank EFG-Hermes Holding SAE starts today and ends July 3.
Israel’s TA-25 Index closed 0.1 percent higher at 1,406.15. Israel Corp.’s shares fell 1.5 percent, the most since May 29, to 2,028 shekels after Calcalist newspaper said shareholders may be advised to vote against a Zim Integrated Shipping Services Ltd. debt accord.