Disappointing results from Arabtec Holding sparked a sell-off in Dubai on Sunday.
The construction firm’s shares finished off 4.61 per cent at Dh1.45, dragging the emirate’s headline index 1.2 per cent lower at 3,304.63.
Arabtec announced reduced losses of Dh46.4 million for the first quarter of the year compared with a loss of almost Dh280m a year earlier.
However, the company announced that it proposed to use its statutory reserve balance to cut accumulated losses and was in discussions with majority shareholder Aabar on potential collaboration options, warning of further challenging conditions ahead.
“The talks with Aabar, further cost-cutting and the drawing on the statutory reserve all look negative for Arabtec,” said Sanyalak Manibhandu, a research manager at NBAD Securities in Abu Dhabi.
“Looking at the fundamentals the stock should continue to lose ground going forward.”
Fellow construction firm Drake & Scull was the other main lagger on the Dubai Financial Market, shedding 4.59 per cent to 54 fils, after reporting a 61 per cent decrease in first-quarter profit.
In the capital, the Abu Dhabi Securities Exchange General Index fell 0.3 per cent to 4,374.19, with blue chips FGB, Aldar and Etisalat all ending lower.
RAK Ceramics led gains, closing up 4.62 per cent at Dh3.40 after the company announced a 9 per cent increase in first-quarter profit.
Banks were the capital’s other bright performers on Sunday, with NBAD and ADCB rising 1.33 and 1.16 per cent, respectively.
Shares in Saudi Arabia initially shrugged off the downgrading of the kingdom’s debt rating by Moody’s at the weekend, as the Tadawul All Share Index climbed by as much as 0.83 per cent in early trading.
Shares pared gains gradually throughout the day however, with the index finishing 0.03 per cent lower at 6,692.60.
jeverington@thenational.ae
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