Shares in the Islamic mortgage provider Tamweel fell 10 per cent on Tuesday morning after the company resumed trading for the first time since November 2008.
Investors rushed to offload stock in the company, which dropped from 99 fils to 0.891 fils at the open on the Dubai Financial Market General Index. Individual stocks can only gain or drop by a maximum of 10 per cent in a single trading session.
Tamweel was suspended from the bourse when talks over when a planned merger with its largest competitor, Amlak Finance, failed to materialise and Dubai Islamic Bank took full control of the company.
"Tamweel's performance upon reopening is exactly what we expected," said Haissam Arabi, Chief Executive and Fund Manager at Gulfmena Alternative Investments.
"The stock will be under pressure for a few more sessions before it finds a fair price on the market. Many investors have holding on to Tamweel shares for a long time and this is their first opportunity to exit and cash in on the stock for over two years," he added.
