Arabtec Holding PJSC slumped to the lowest in a month on speculation a strategic investor stopped buying the stock after a recent surge and as the United Arab Emirates’ biggest construction company cut its stock dividend.
The shares dropped 8.9 percent to 2.67 dirhams, the lowest level since Feb. 8, at the 2 p.m. close in Dubai. The board proposed 5 percent bonus shares and cash dividend of 5 fils a share, Arabtec said in a statement today. That compares with 25 percent stock dividend in 2010.
“We are seeing some profit-taking that is correcting the recent surge, as the shares have to equalize with the price-to- earnings ratio,” said Waleed Al Khateeb, senior finance manager at Dubai-based Daman Securities. “We also guess that the strategic investor in the stock has now stopped buying.”
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