Stocks level as merger of Aabar and Arabtec drags on

UAE stocks stayed mainly flat on news that due diligence in the merger negotiations between Aabar Investments and Arabtec Construction have been extended until April 16. "Investors are cautious; however, we are hoping for support from fundamental news in the next coming weeks," said Rami Awwad, a senior business development manager at Al Awael Securities in Abu Dhabi. "I hope it's positive, regardless of the outcome."

The Abu Dhabi Securities Exchange General Index ended trading up 0.01 per cent at 2,724.75, while Aabar shares closed 0.4 per cent higher at Dh2.18. Meanwhile, Finance House fell 10 per cent and the company was suspended from trading yesterday. Dana Gas shares fell 1.2 per cent to Dh0.82. The Dubai Financial Market General Index fell 0.53 per cent to 1,588.36. Arabtec, which yesterday reported a net loss of Dh16.8 million for the fourth quarter last year, closed 2.33 per cent lower.

Air Arabia shares ended 1 per cent down, and Shuaa Capital dropped 0.8 per cent to close at Dh1.15 on news that its head of research, Mahdi Mattar, had resigned for personal reasons. Elsewhere in the region, the main measures in Muscat and Qatar ended 0.08 per cent and 0.07 per cent higher at 6,689.82 and 6,847.66 respectively, and Kuwait's bourse closed the session 0.37 per cent higher at 7,406.20.

The Saudi Tadawul All-Share Index closed up 0.26 per cent at 6,445.12. [e-mail]