DSI falls for third day, pulling back DFM

Real estate and construction companies continued to weigh on the Dubai market yesterday as Drake & Scull extended losses and the Abu Dhabi market also dropped.

DSI shares plunged 10 per cent for a third consecutive day to close at Dh0.73 per share, its lowest ever.

The shares are down 68 per cent so far this year as retail investors have offloaded the stock amid concerns about its business outlook and investors worried about the outcome of an investigation into its former management team.

DSI said yesterday that there was no reason for its stock to be plummeting and that its current projects were on track.

Emaar Properties, the largest listed stock on the Dubai market, fell for a second consecutive day to close down 1.8 per cent.

Emaar’s hospitality unit announced that it had acquired a 15-year hotel operating contract in Togo.

Damac Properties declined 1.4 per cent. Union Properties, which said yesterday that it had no exposure to embattled private equity company Abraaj, rose 4.5 per cent.

Air Arabia fell 0.3 per cent, bringing its total losses to 2 per cent for the week in the wake of disclosing it had a $336 million exposure to embattled Abraaj Group.

The Dubai index fell 0.7 per cent to 2,815 points.

In Abu Dhabi, the securities index fell 0.5 per cent to 4,545 points, as Dana Gas declined 1 per cent after disclosing on Wednesday that it holds $6m in a fund managed by an affiliate of Abraaj Investment Management Limited.

Last week, a court in the Cayman Islands, where Abraaj is incorporated, appointed provisional liquidators for Abraaj Holdings and AIML as the firm tries to restructure its debt.

Saudi stocks ended 0.2 per cent higher to 8,317 points as Al Marai , the Arabian Gulf’s largest dairy company, rose 2.9 per cent and Saudi Arabian Mining (Maaden) gained 0.9 per cent.

In Kuwait the index rose 0.1 per cent to 4,926 points, while Bahrain’s rose 0.3 per cent 1,306 points.

The Oman index rose 0.1 per cent to 4,577 points, while in Egypt the stock exchange fell 0.1 per cent to 16,176 points.