News Column

Arabtec leads Dubai stock index rise

July 2, 2014

Shares of some 29 companies rose at the DFM on Wednesday with a stock index rise of 7.92 per cent. The surge was led by Arabtec whose stock rose 14.93 per cent, nearing the mandated 15 per cent limit.

Arabtec's stock rose on Wednesday having lost more than 61 per cent of its value in June, closing at AED 2.61 having surged over 250 per cent in the five months previously. The former CEO, Hasan Ismaik, resigned last week amid the companies declining share price, he was then followed by a slew of executives. He was replaced by Mr. Mohamed Ali Al Fahim, former head of finance at the International Petroleum Investment Company.

The company held a press conference yesterday to respond to the swirling rumours which had followed it since the drastic stock devaluation in June, which arguably led brought the entire stock market down over the last month. Chairman of Aabar Investments, which had previously reduced its stake in Arabtec from 21.57 to 18.94 per cent, Khadem Al Qubaisi responded by stating that Arabtec was not responsible for the general decline of the DFM. Furthermore,

Mr. Al Qubaisi also reassured the market that none of Arabtec's projects would cancelled, stating that the company was now in a good position to refocus on its core construction business. He added that there would be a 'lot of news' coming from Arabtec over the next few months. In addition, Mr. Al Qubaisi stated that Arabtec is expecting positive second quarterly results, regardless of the companies' stock volatility.

Shares in Arabtec on Wednesday were up 14.93 per cent to AED 3.31 by the end of day trading.

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Source: CPI Financial

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