Air Arabia drops on Abraaj links

dubai — Stock exchanges in Dubai and Abu Dhabi closed in negative territory on Monday, reflecting a slump in global stocks and oil prices due to increasing trade tensions.

Markets in the rest of the region were closed because of the Eid holiday, which started last week.

In Dubai, where the index dropped 1.8 per cent, the worst performer was Air Arabia, which lost seven per cent and saw the highest trading volume in Dubai on Monday. The low-cost carrier said on Monday it has invested in Abraaj funds, without giving details on its exposure to the private equity group which last week filed an application for provisional liquidation.

The founder of Abraaj is a board director of the airline, which said it has appointed a team of experts who are “actively engaged with all stakeholders and creditors involved with the matter to ensure Air Arabia’s investment and business interest is protected.”

The Abu Dhabi index lost 2.7 per cent, with stocks in financial institutions mostly down. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Union National Bank and heavyweight First Abu Dhabi Bank all closed in negative territory, with FAB, down 3.6 per cent, posting the biggest loss.

The only exception was National Bank of Fujairah, which outperformed the market soaring 13.4 per cent. Investment firm Waha Capital dropped 4.5 per cent.