Abu Dhabi Commercial Bank shares fell Sunday taking the weekly loss to more than 18 per cent as investors awaited more information on the institution’s exposure to Saudi Arabia’s Saad and Gosaibi groups. Banks across the region have been forced to disclose loan exposure to the two familiy conglomerates, which are in the throes of debt restructuring.
“The fact that investors need to have more information is one of the key issues on the table, the main reason why the stock has been losing so many points so fast,” said Ayman el Saheb, the director of operations at Darahem Financial Brokerage. [CK] “We still don’t know what the exact numbers are to gauge exposure to the Saad-Gosaibi groups.”
The turmoil at the Al Gosaibi and Saad groups, two of the region’s largest family-run conglomerates, has spread throughout the Gulf as banks have moved to limit exposure to both companies after their accounts were frozen in Saudi Arabia last month. Local lenders including Mashreqbank, National Bank of Abu Dhabi and First Gulf Bank have admitted lending exposure without detailing value of their loans.
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