Dubai stocks fell to the lowest in more than two months after the United Arab Emirates’ biggest-listed builder reported a third-straight quarterly loss.
The DFM General Index slid 0.5 percent to 3,966.24 at 10:51 a.m. in the emirate, the lowest since June 8. Arabtec Holding Co. slumped to the lowest since April. Abu Dhabi’s ADX General Index retreated 0.1 percent.
Arabtec, which helped build the world’s tallest tower in Dubai, posted a 718.4 million-dirham loss ($196 million) last quarter on rising costs, compared with a profit of 102.4 million dirhams a year earlier. It’s stock has declined 23 percent so far this year, compared with a 5.1 percent gain in Dubai’s gauge.
Three of the companies’ top executives resigned last month as part of Arabtec’s reorganization plan to cut costs. Their departure came 13 months after Chief Executive Officer Hasan Ismaik resigned and a number of top managers were dismissed amid speculation the construction company was losing government backing. The shakeup sparked a selloff in Dubai’s benchmark index of equities, sending the gauge tumbling more than 20 percent in June 2014.
Arabtec decreased 3.6 percent to 2.15 dirhams. Gauges in Kuwait and Muscat fell 0.2 percent each.
Source: Bloomberg
