Arabtec managed a smart turnaround, building on investor hopes that change at the top will translate into decisive action on the operations side. Image Credit: Gulf News Archive

Fears of a second wave in the US and a shakeup on major global indices – at or near key resistance levels – triggered profit booking by investors.

On UAE indices, real estate and banking stocks again came under pressure, with DFM dipping 0.72 per cent, while ADX slipped 0.54 per cent.

Among blue-chips, Commercial Bank of Dubai was down 4.86 per cent, while Emaar Malls followed with 2.04 per cent. Finance House closed 5 per cent lower.

Emaar Malls is highly sensitive to any news regarding the pandemic and that could be the reason for the fall. Interestingly, Arabtec shares rallied 7.31 per cent in an apparent reaction to recent management changes.

Walled Al Muhairi, who also happens to be deputy CEO of Abu Dhabi Sovereign wealth fund Mubadala, was recently appointed Chairman and the hope is that it will speed up Arabtec’s restructuring process.

A long timer

Dubai Investments was among the first listed companies when DFM was inaugurated on March 26, 2000. Let’s take a quick glance on this value creator with interests spanning real estate, building materials, venture capital and education.

The company grew its revenues from Dh68 million 25 years ago to Dh2.9 billion in the last financial year, while its total assets since inception grew from Dh718 million to Dh21 billion.

Dubai Investments has 16,502 shareholders and has paid handsome. With a market cap of Dh4.9 billion, shares currently have a dividend yield of 8.70 per cent. It is trading with a price/book value of 0.40, price/sales ratio of 1.75 and a PE of 6.84, indicating cheap valuations.