Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Bahrain- Arabtec "sacks" hundreds of employees stocks plunge  Join our daily free Newsletter

MENAFN - Khaleej Times - 24/06/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) Arabtec's stocks fell 10 per cent during trading on monday reaching its lowest level since march.

shares of the uae’s largest construction firm arabtec on monday tumbled to its lowest since march after the company fired hundreds of employees bloomberg reported citing people familiar with the matter.

the dubai contractor has laid off a significant number of employees in the wake of chief executive hasan ismaik’s departure last week sources said adding: “shohidul ahad-choudhury arabtec’s head of mergers and acquisitions and a former deutsche bank executive was among those dismissed.”

it is reported that large numbers of staff including at least two senior executives have departed the company since ismaik resigned. arabtec didn’t confirm the staff lay-off.

the contractor has plunged 48 per cent so far this month and 53 per cent from a record dh7.40 in may. abu dhabi state-run aabar investments cut its stake to 18.85 per cent as of june 11 from 21.57 per cent stoking speculation the builder was losing government backing.

investors are selling arabtec because there’s uncertainty surrounding its governance and ability to “execute their pipeline of projects effectively with so much internal strife” according to ramez merhi director of asset management at dubai-based al masah capital.

“this looks as if it could have been a fight for control of the company and aabar won.”

ismaik is still the single-largest shareholder in arabtec with an nearly 29 per cent stake. the former ceo said on june 18 that he would consider selling his shares in the company if he gets an offer from the government. arabtec board member mohamed al fahim was appointed acting ceo following ismaik’s departure.

“the company must be forced to come up with an announcement to ease tension among the investors mainly the small investors” wadah al taha chief investment officer of dubai-based al zarooni group said.

— abdulbasitkhaleejtimes.com

dfm hits 3-month low

abdul basit

dubai’s bourse on monday sank to its lowest level in more than tree months with its plunge led by property stocks — especially arabtec as the largest listed construction company laid off a significant number of employees in the wake of former chief executive officer’s hasan ismaik’s departure last week.

the dfm general index dropped by 4.3 per cent to 4296 points the lowest close since march 19 and a second day falling. arabtec fell by nearly 10 per cent after dismissing staff including senior managers bloomberg reported citing sources.

property giant emaar properties which has the largest weighting on the benchmark index was the biggest decliner by index points retreating 4.9 per cent. emaar fell to dh8.80.

“there is confusion in the market and i call it ‘arabtec fever’” wadah al taha chief investment officer of dubai-based al zarooni group told bloomberg. “the sentiment is very weak and investors weren’t prepared for the situation getting so much worse” al taha said adding that in a worst case scenario the index could fall to 3800.

the dfm witnessed a total of 10686 trades generating 598 million shares volume and valuing dh1.47 billion.

overall 31 stocks attracted trades. twenty-six stocks declined and only four appreciated in terms of value. arabtec became the top trading volume contributor with 132 million shares followed by gulf finance house 81 million shares and union properties 75 million shares. the dfm soared this year amid a real estate recovery in the emirate before the uae’s central bank said on june 8 there are signs the property market is overheating.

“dubai’s gauge entered a bear market after it plunged 20 per cent since a peak in may. two of the regularly traded stocks in the 30-member benchmark gauge were trading above their 50-day moving average price... that’s the fewest since july 2012 and compares with a one-year peak of 23 in december” according to data compiled by bloomberg.

arabtec which has the fifth-highest weighting on dubai’s benchmark index has dropped 48 per cent in june. its shares tumbled to dh3.46 the lowest since march 17.

— abdulbasitkhaleejtimes.com


 


Khaleej Times




  MENA News Headlines
 Sep 27 2016 - Goldplat, Highland Gold, Kodal Minerals, Gemfields, Kefi Minerals, Savannah Resources, SolGoldProactiveInvestors - UK
(MENAFN - ProactiveInvestors - UK) SP Angel, Mon Goldplat* (LON:GDP) – Results improve as Goldplat recovers from disastrous year Highland Gold (LON:HGM) – Interim results Kodal Minerals* ...

 Sep 27 2016 - Oil price, Victoria Oil & Gas, Lamprell, Velocys, Egdon/EOG/Union Jack. And finally...ProactiveInvestors - UK
(MENAFN - ProactiveInvestors - UK) Malcolm Graham-Wood, Mon Oil price The 'Opec' meeting scheduled for Wednesday and looked forward to by so many bystanders looks like being a farce but don't ...

 Sep 27 2016 - Aid enters Syria's Madaya, other besieged townsMENAFN
(MEANFN) The International Committee of the Red Cross said that aid has been delivered to four besieged towns in Syria for the first time in almost six months.In detail, seventy-one lorries reached ...

 Sep 27 2016 - Saudi women put hands together to end guardianship systemMENAFN
(MENAFN) A petition signed by more than 14,000 Saudi women calling for an end to the country's male guardianship system is being handed to the government.Women must have the consent of a male ...

 Sep 27 2016 - Obama worried about situation in AleppoMENAFN
(MENAFN) Amid an assault by Syrian government forces, US President Barack Obama has expressed "deep concern" about the situation in rebel-held parts of Aleppo.Medics in the city are struggling to ...

 Sep 27 2016 - Second round of rebel evacuations from central Homs startsMENAFN
(MENAFN) A Syrian official says a second round of rebel evacuations from the central city of Homs is under way.Homs governor says 120 men and their families are expected to depart Al Waer ...

 Sep 27 2016 - UAE- WATCH: Dh14m yacht catches fire in RAK, sinksKhaleej Times
(MENAFN - Khaleej Times) A luxury yacht went up in flames at Al Hamra Marina in the emirate of Ras Al Khaimah. The Dh14million vessel sank into the sea after it was completely destroyed, according ...

 Sep 27 2016 - UAE- Games Maker to changemaker: Ahamed Sulaiman's Olympic journeyKhaleej Times
(MENAFN - Khaleej Times) Indian national Ahamed Sulaiman - the just returned Games Maker from the Rio Olympics and Summer Paralympics 2016 - is a true inspiration for all the hardworking blue collar ...

 Sep 27 2016 - 'Youth should be proud of UAE's presence in Yemen'Khaleej Times
(MENAFN - Khaleej Times) Emirati youth are urged to keep themselves better informed on current world issues, broaden their perspectives, and read more. This is particularly pertinent in order to ...

 Sep 27 2016 - UAE- Regulation must with drone sales soaring: Aviation bodyKhaleej Times
(MENAFN - Khaleej Times) The UAE General Civil Aviation Authority (GCAA) is currently working with companies selling drones in the country to inform all their customers on the regulations around ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help