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MIDEAST STOCKS-Arabtec rebounds on recap plan approval; Saudi's Tasnee jumps on asset sale
February 22, 2017 / 8:03 AM / 9 months ago

MIDEAST STOCKS-Arabtec rebounds on recap plan approval; Saudi's Tasnee jumps on asset sale

DUBAI, Feb 22 (Reuters) - Dubai’s share index rose on Wednesday after builder Arabtec rebounded sharply upon receiving approval from the securities regulator to boost its capital, while Saudi chemicals producer Tasnee jumped on news it will sell a major facility.

Arabtec jumped 6.3 percent to 0.89 dirham, bouncing off its lowest closing level in five years on Tuesday. The builder said it received initial approval from the stock market regulator for its recapitalisation programme, subject to completion of its 2016 financial audit and a final sign-off.

The construction company reported a wider fourth-quarter loss earlier this month and the board said it was seeking shareholder approval for a 1.5 billion dirham ($408.4 million) rights issue.

The main index was up 0.8 percent in the first hour of trade, with 19 other shares trading higher and six shares lower.

Emaar Properties, the builder of the world’s tallest tower, was up 1.2 percent.

Abu Dhabi’s index rose 0.1 percent on the back of a 2.3 percent rise in shares of Dana Gas. Earlier this week the commodities producer came under pressure after a downward revision to its net earnings for 2016.

Saudi’s National Industrialization (Tasnee) jumped its 10 percent daily limit after saying it entered into an agreement with Australian chemicals maker Tronox to sell its titanium dioxide business, Cristal, for $1.673 billion in cash and 37.6 million new shares in Tronox.

The deal is expected to happen within 15 months and is subject to regulatory approvals.

Other petrochemical shares also rose as Brent futures rebounded strongly overnight and were trading near $57 a barrel. Advanced Petrochemical was up 4.6 percent. The main index was up 0.5 percent. Qatar’s index fell 0.7 percent as Commercial Bank dropped 4.6 percent after reporting a large fall in full-year net profit.

The bank made a net profit of 500.8 million riyals ($137.56 million) in 2016, down 64 percent from the 1.4 billion riyals it made in the prior year. ($1 = 3.6407 Qatar riyals) (Reporting by Celine Aswad; Editing by Andrew Torchia and Louise Heavens)

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