"May 13 (Bloomberg) -- Dubai stocks led a drop in the Persian Gulf, sinking to the lowest in three months, after oil slumped on concern that Europe’s debt crisis will worsen and on speculation Arabtec Holding Co. may de-list its shares.
Arabtec fell 5.8 percent after Alrroya reported Aabar Investments PJSC and its units bought 53 percent of the United Arab Emirates’ biggest builder by market value. Emaar Properties PJSC, developer of the world’s tallest skyscraper, dropped for the eighth time in nine days. Dubai’s DFM General Index lost 1.8 percent to 1,488.24, the lowest since Feb. 9, at the 2 p.m. close in the emirate. The Bloomberg GCC 200 Index slipped 0.5 percent, while Egypt’s benchmark gained.
“Investors have shifted their focus from corporate earnings to other issues such as oil prices falling quickly and sharply to the lows of the year and the turmoil in the euro zone,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities. “There is also some speculation Arabtec will be taken off the market like its parent company.”
Crude for June delivery retreated 2.4 percent last week to $96.13 a barrel on the New York Mercantile Exchange, a 2012 low, after Chinese factory output in April missed estimates. Gulf Arab oil exporters, including Saudi Arabia and the U.A.E. supply about a fifth of the world’s oil. About 89 million shares traded in Dubai today, compared with this year’s peak of 835 million.
Abu Dhabi’s benchmark index lost 0.2 percent in its seventh day of declines, the longest stretch of losses since December.
U.S. Stocks Fall
Global equities declined last week as an inconclusive election in Greece left political parties struggling to form a government. The impasse reignited concern over Greece’s ability to meet terms of its two bailouts and the possibility the country will leave the euro. U.S. stocks also tumbled, with the Standard & Poor’s 500 Index slumping 1.2 percent in its second weekly retreat after U.S. banks sank following JPMorgan Chase & Co.’s $2 billion trading loss.
Arabtec tumbled to 2.78 dirhams, the lowest close since March 27. Abu Dhabi government-controlled Aabar directly owns 23 percent of Arabtec and affiliates have 30 percent, Alrroya said, citing Aabar Chairman Khadem Al Qubaisi. Aabar dropped a $1.74 billion offer for Arabtec two years ago and took its business private in the same year.
Calls to Kamal’s cellular phone weren’t answered and Aabar declined to comment when contacted by Bloomberg news.
Emaar slid 1.3 percent to 2.94 dirhams, the lowest close since March 8.
Egypt’s Gain
Elsewhere in the Gulf Cooperation Council, Qatar’s QE Index retreated 0.1 percent and Oman’s benchmark stock index slipped 0.2 percent. Bahrain’s measure and Kuwait’s gauge were little changed. Saudi Arabia’s Tadawul All Share Index lost 0.7 percent.
In North Africa, the EGX 30 Index rallied 1.4 percent to 5,083.26, the highest close since March 22, after the country televised its first presidential debate and voting abroad started.
“Positivity from the political scene is the main driver, over the weekend Egyptians abroad started voting, that’s in addition to the presidential debate,” said Wafik Dawood, director of institutional sales at Cairo-based Mega Investments Securities. “The outcome of the debate is not significant, but there’s the fact that most Egyptians didn’t expect to live to see that day.”
Egypt’s presidential election must start as scheduled on May 23, the country’s highest administrative court said yesterday. The Supreme Administrative Court made the ruling, overturning a lower-court decision that had suspended procedures for the vote.
In Israel, the TA-25 Index fell 0.6 percent. The yield on the country’s 5.5 percent notes due January 2022 dropped one basis points, or 0.01 percentage point, to 4.53 percent.
To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net "
Steven
Steven Morris CA (SA)
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