Topaz woes drags down shares in Oman's Renaissance Services

Markets Update: Oman's Renaissance Services slumps to two year low, Gulf markets little changed ahead of Paris meeting to discuss the eurozone crisis - with video.

Oman's Renaissance Services dropped to the lowest in two years, after EFG-Hermes cut the Oman-based oil services company to neutral and first half profits dropped 77 per cent.

Video: Market Minute, August 16, 2011

Hadeel al Sayegh looks at trouble for Oman's Renaissance Services.

Topaz chief executive officer Fazel Fazelbhoy stepped down in May after Renaissance "uncovered some serious issues", Renaissance said in a statement to the Muscat, Oman stock market on Monday. "The investigation uncovered evidence of fraud, ethical misconduct and control weaknesses over a number of years," the statement added.

Shares listed on the Muscat Stock Exchange dropped 10 per cent to 0.559 rial intraday, the lowest since April 2009. Renaissance has dropped 19 per cent in the past two days, the biggest drop since the company began trading in 2002.

Oman's benchmark lost 0.5 per cent to 5447.59 points.

UAE stock markets were little changed as investors were unwilling to take any risk ahead of a Paris meeting in which French President Nicolas Sarkozy and Germany's Chancellor Angela Merkel will discuss the eurozone crisis.

The Abu Dhabi Securities Exchange General Index was unchanged at 2601.30 points. Dubai's benchmark was little changed at 1469.45 points.

Elsewhere in the region, Kuwait's measure added 0.1 per cent to 5830.80. Bahrain's index was little changed at 1266.98 points. Qatar's benchmark was little changed at 8120.40 points. The Saudi Tadawul All-Share Index was up 0.3 per cent to 6136.10 points.