Authorities seeking clarification of media reports of possible investment in its shares
Trade in shares of Dubai construction firm Arabtec were suspended from the opening on Thursday pending clarification of media reports on possible investment in its shares, a bourse spokesman said.
Arabtec shares, the most heavily traded on the bourse, have risen sharply this week on speculation that Abu Dhabi state fund Aabar Investments, a big shareholder, may further raise its stake from the current 18.94 percent.
Investors believe Aabar may do this by buying part of the 28.85 percent stake held by former chief executive Hasan Ismaik, who resigned last month. Aabar has declined to comment.
Update (11:10am): Dubai's market pulled back in early trading on news of the suspension of Arabtec shares. The suspension appeared to indicate that regulators are now taking a more active approach to volatility in Arabtec shares and disclosure of information about the company, after wild swings in the stock over the past two months destabilised the entire stock market.
Dubai's index slipped 0.7 percent as property stocks retreated. Developers Emaar Properties and Union Properties fell 0.4 and 1.4 percent respectively.
Update (12:55pm): The Dubai bourse recovered to rise 1.21 percent, while key property stocks also say a resurgence with Emaar Properties and Union Properties up 1.84 and 2.35 percent respectively.
always RE-Active never active. too little to late.