Drake & Scull shares close down 5 per cent in flat Dubai trade

Dubai stocks ended the day flat on an otherwise positive day for regional stocks.

Bourses across the region rose in line with oil prices, as Kuwait added its voice to calls for production cuts to be extended into 2018, following Saudi Arabia and Russia. Brent crude futures were around 0.7 per cent higher at US$52.17 a barrel on Tuesday afternoon.

The Dubai Financial Market General Index ended the day virtually unchanged, rising just 0.03 per cent to 3,376.75, with a gain by Damac Properties cancelled out by a fall by DIB. Damac shares closed up 2.9 per cent at Dh2.80, even as first-quarter profits released on Monday afternoon fell short of analyst forecasts.

Drake & Scull International shares fell by as much as 9.5 per cent, eventually closing down 5 per cent at 36.2 fils, after the contractor announced a Dh722.5 million loss for the first quarter on Tuesday.

Shares in Marka remained in freefall, closing 10 per cent lower at 71.3 fils on the stock’s sixth consecutive negative trading day. The retail company, which has had founding shareholders cash out and a change in management, has seen its stock halve in value since the start of the month.

The Abu Dhabi Securities Exchange General Index closed up 0.4 per cent at 4,582.07, bolstered by banking stocks.

First Abu Dhabi Bank and ADCB led gainers, rising 0.9 per cent and 2.1 per cent, respectively.

Banks also led gains in Saudi Arabia, after Al Rajhi Bank, the kingdom’s second-largest lender by assets, announced a 10 per cent increase in first-quarter profits.

The Tadawul closed up 0.7 per cent, thanks to strong climbs by Al Rajhi, NCB and Banque Saudi Fransi.

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