Dubai
UAE indices extended their rally on Thursday, especially by Dubai index, as traders focused less on Arabtec shares.
Dubai‘s benchmark index closed 1.57 per cent higher at 4,593.27 points, fuelled by real estate and insurance shares. Real estate and energy shares lifted the Abu Dhabi index by 0.47 per cent to 4,803.79 points.
“The Dubai market was much more stable today. Overall volume was better and traders concentrated less on Arabtec shares,” Mohammad Ali Yasin, managing director of NBAD Securities, told Gulf News.
He said traders were able to invest based on fundamentals rather than fear.
Arabtec shares, which opened the day higher and rose almost two per cent during the day, closed at Dh4.26, a fall of 0.93 per cent compared to Wednesday. It hit a day’s high of Dh4.45. The company’s shares fell by more than 36 per cent this month.
Arabtec said on the Dubai bourse website that the board had accepted the resignation of Hassan Ismaik as board member, managing director and CEO, and appointed Mohammad Abdullah Ahmad Saif Al Suwaidi as a new independent board member to replace Ismaik in that role.
It also confirmed that Mohammad Al Fahim, a board member from Abu Dhabi’s state-owned International Petroleum Investment Co (Ipic), as acting CEO for a temporary period. “We aim to protect the rights of shareholders and to maintain and achieve the best interests of the company and its shareholders and investors,” it said.
Ismaik has 28.85 per cent stake in the construction company.
The big question is what will happen to the former CEO’s stake in the company? “This is what everybody is trying to find out,” Yasin said.
He said that no decision has been taken yet.
“I believe strategic investors will be eyeing these shares. It is a substantial amount that can really block any kind of decisions. I don’t believe the stake sale is going to happen soon,” he said.
Among the gainers in Dubai, Drake & Scull rose 5.56 per cent to Dh1.90, followed by Shuaa by 4.84 per cent to Dh1.30 and Emaar by per cent to 4.47 per cent to Dh9.58.
Drake and Scull shares hit the highest since inception in March 2009.
Gulfa fell by 9.76 per cent to Dh2.68, followed by Al Salam Group by 4.55 per cent to Dh1.05 and Gulf General Investments Co by 3.94 per cent to Dh1.22.
Of the 30 companies traded, 21 rose, seven declined and two closed unchanged.
About 693.96 million shares worth Dh1.85 billion were traded.
Arabtec was the active value leader while Drake & Scull was the active volume leader.
Yasin said that people should not pressurise the company and if the stock can maintain the current price range, it should be seen as a positive sign.
“The market will start to build a good buffer for next week, technically from a low point, in bid to face any challenges,” he said.
In Abu Dhabi, Asmak rose 10.70 per cent to Dh6, followed by Eshraq by 6.30 per cent to Dh1.35 and Abu Dhabi Aviation by 4.84 per cent to Dh3.25.
Among the losers, Ras Al Khaimah White Cement fell by 9.70 per cent to Dh1.49, followed by Union Insurance Company by 5.98 per cent to Dh1.10 and Bildco by 5.56 per cent to Dh1.02.
Of the 29 companies traded, 16 rose, 11 declined and two closed unchanged.
About 157.04 million shares worth Dh416.75 million were traded.
Aldar was the active value leader while Eshraq was the active volume leader.
