DUBAI May 16 Dubai-listed builder Drake & Scull
plummeted in response to its first-quarter results, while Dubai
real estate firm DAMAC jumped on news that MSCI would add it to
an index, in otherwise largely flat Gulf markets early on
DSI slumped 7.6 percent to 0.352 dirham, a 15-month
low, after it reported a first-quarter net loss attributable to
shareholders of 722.5 million dirhams ($196.9 million) versus a
profit of 9.8 million dirhams in the year-ago period.
The company is in the midst of a capital restructuring plan
to wipe out its accumulated losses, and has said it expects to
receive a capital injection of 500 million dirhams from a
strategic investor by mid-2017.
DAMAC rose 4.0 percent after MSCI said it would
add the stock to its United Arab Emirates index on June 1.
Arqaam Capital estimated the inclusion would bring $68 million
of passive fund inflows into the stock.
Dubai's stock index was down 0.2 percent.
Banking shares were some of the top gainers in neighbouring
Abu Dhabi, helping lift the index 0.1 percent; Abu Dhabi
Commercial Bank was up 1.9 percent.
In Saudi Arabia, the index barely moved after 50
minutes of trade as 67 shares advanced and 59 fell. The
petrochemical sector was mixed, with larger companies such as
Saudi Basic Industries underperforming smaller firms.
Analysts at NCB Capital said the sector's bottom line in the
first quarter almost doubled from a year ago and revenue rose by
about 16 percent. Many of the stocks, however, are trading near
fair value, leaving investors with little incentive to buy
despite a rebound in oil prices over the last few days.
Qatar's index was also flat with declining shares
outnumbering rising ones by nine to six.
(Reporting by Celine Aswad; Editing by Andrew Torchia and