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MIDEAST STOCKS-Dubai's Drake & Scull continues heavy losses, region mixed
May 8, 2017 / 8:01 AM / 4 months ago

MIDEAST STOCKS-Dubai's Drake & Scull continues heavy losses, region mixed

DUBAI, May 8 (Reuters) - Shares of builder Drake & Scull (DSI) continued to sink in early trade on Monday heading for a second day of heavy losses on its revised recapitalisation programme while markets across the region were mixed.

Dubai’s DSI was down 5 percent to 0.379 dirhams after an hour of trade, heading to a 14 month low.

The stock plummeted 9.9 percent on Sunday on news that at a shareholder meeting at the end of last week the company had increased its write off by up to 722 million dirhams, in addition to a previously planned reduction of 992 million dirhams. This would effectively further dilute current shareholdings.

The company also said a Dubai-based investment firm, Tabarak Investment, had agreed to buy 500 million dirhams of the new share issue, pending regulator approval.

The retail arm of Emaar Properties, Emaar Malls rose 0.8 percent after it reported a 1.9 percent rise in first quarter net profit to 539 million dirhams.

In neighbouring Abu Dhabi, a rebound in some of the previous session’s top losers helped lift the index 0.5 percent higher. Dana Gas was up 2.4 percent and Abu Dhabi Commercial Bank rose 2.2 percent.

Meanwhile, the Riyadh index was flat after 40 minutes of trade as 73 shares declined and 41 rose.

Medical provider Mouwasat jumped 3.9 percent after it made first quarter net income of 85.1 million riyals, up 24.2 percent from a year ago and above analysts’ forecast of 79.42 million riyals.

However, most petrochemical shares were weak as Brent crude contracts stayed below $50 a barrel.

Reporting by Celine Aswad; Editing by Andrew Torchia, Larry King

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