Arabtec tumbles on CEO trading ban
Dubai, January 5, 2011
Dubai builder Arabtec dropped 1.5 per cent in early trade, after the company's chief executive on Wednesday said he has been suspended from trading in UAE markets for six months will seek a clarification from the regulator.
"Obviously we will see some short-term impact, as there is no transparency about the issue at this point," says Robert McKinnon, ASAS Capital chief investment officer. The Dubai index slipped 0.2 per cent to 1,655 points.
Qatar's index, meanwhile looked to continue its surge, after the bourse rose for a fifth straight session a day before amid rising investor sentiment, while falling oil prices may cause other regional markets to slip.
Oil fell for a second day on Wednesday, extending the previous session's 2.4 per cent drop, as enthusiasm for commodities diminished with a stronger dollar, following a sharp year-end rally in raw material prices.
Doha's index kicked off a rally with the Gulf state winning the bid to host the soccer World Cup in 2022. It gained further steam as third-quarter nominal GDP of 21 per cent confirmed economic growth was on the right track, further boosting investor sentiment.
"Qatar's strong growth momentum will be in focus attracting fund flows. Investor expectations of healthy earnings announcements with an appealing dividend season will keep the market active," says Ajeev Gopinath a fund manager at Muscat-based Gulf Baader Capital Markets.
Industries Qatar gained 1.5 per cent, while banking and infrastructure shares also advanced. "Banking sector indicators are positive and the sector is likely to outperform its peers in the region."-Reuters