Arabtec resurgence has positive effect on Dubai stock market

Other top gainers on Sunday were Gulf General Investments Company (GGICO), the bourse operator DFM and Union Properties.

Arabtec’s recovery on the stock market continued to have a positive effect on the Dubai Financial Market (DFM), with both ending the day on double-digit gains.

Dubai's main index climbed 4.41 percent as shares in Arabtec jumped 14.7 percent. 

Among other top gainers on Sunday were Gulf General Investments Company (GGICO), up 13.8 percent; the bourse operator Dubai Financial Market, up 12.5 percent and Union Properties (also recovering from a significant drop last week), which was up 10.5 percent

The main loser on the DFM was Almadina for Finance and Investment Company, which was down 9 percent.

Last week’s Arabtec press conference appears to be having the desired effect on the markets. 

Chairman of the company, Khadem Al Qubaisi, assured investors that there would be no delisting of Arabtec from the DFM, and no cancellation of projects, which he said are “all going according to plan”.

Despite a recent drop in shareholding by Aabar, he said the state-backed investment company will look at increasing its stake in the future.

“The cooperation between Arabtec and Aabar is very strong and now I think we are reaching an era where it is stronger than before,” he said.

While further assurances were given about its relationship with Samsung Engineering, he said Arabtec would restructure and “focus on the core business, which is construction”.

When asked about the share price, Al Qubaisi said: “I’m not going to talk about the share price. At the end of the day, my job is to manage this company and my job is to report to the shareholders and to be transparent with the shareholders.

“My advice to the shareholders is to study the company very well to reach the target or the price based on the studies, not based on speculation.”

Meanwhile, the change in management at Arabtec will not affect any future joint-venture bids with Samsung Engineering, the South Korean construction giant has said.

Speaking to The National newspaper, a spokesperson said the company has been aware of developments at the UAE construction company.

 “Samsung has been in steady contact with Arabtec. Even though there are changes in the top management of Arabtec, there will be no impact on the [joint venture]. The project proposals will be executed as planned,” a spokesman for Samsung Engineering told The National.

The joint venture was signed last September, aimed at targeting large-scale oil & gas and infrastructure projects in the region.



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