Dubai shares dropped for the first time in four days, led lower by Arabtec Holding PJSC, on concern the construction company’s stock will be diluted by the sale of a stake to Abu Dhabi-based Aabar Investments PJSC.
Arabtec retreated the most in a month. Emaar Properties PJSC, the United Arab Emirates’ biggest developer, declined to the lowest this year. The DFM General Index lost 1.2 percent, the biggest fluctuation among the seven Gulf markets, to 1,814.33. Most other Gulf benchmarks advanced.
“The Arabtec news is negative in the short-term because of shareholder dilution,” said Yazan Abdeen, a fund manager at ING Investment Management (Dubai) Ltd. In the longer-term, Arabtec will benefit on two levels, “first, cash, which will make the working capital of the company more efficient, and second, the amount of backlog that Aabar will bring to the table.”
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