Tuesday 12 January 2010

Dubai Stocks Fall Most in Week Before Results; Arabtec Drops

Dubai shares declined the most in more than a week before fourth-quarter earnings later this month and as Arabtec Holding Co. retreated on concern that a proposed stake sale would dilute shareholder value.

Arabtec, the United Arab Emirates’ biggest construction company, fell for a third day. Emaar Properties retreated the most in almost three weeks and in Abu Dhabi, Aldar Properties PJSC closed at the lowest level in a month. Residential rents in Abu Dhabi will probably continue to fall in the first quarter, Landmark Advisory said. The DFM General Index lost 2.4 percent, the most since Jan. 4, to 1,759.05. Abu Dhabi’s benchmark index dropped 0.6 percent and Qatar’s measure slid 1.4 percent.

“There is no catalyst to buy here, especially ahead of fourth-quarter earnings,” said Julian Bruce, director of equity sales at EFG-Hermes Holding SAE, the biggest publicly traded Arab investment bank. “Arabtec is seeing further selling due to concern over dilution in the proposed deal.”

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