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MIDEAST STOCKS-Dubai's Drake & Scull slumps; oil below $50 drags region down
May 7, 2017 / 8:43 AM / 7 months ago

MIDEAST STOCKS-Dubai's Drake & Scull slumps; oil below $50 drags region down

DUBAI, May 7 (Reuters) - Shares of Dubai builder Drake & Scull (DSI) slumped to a 14-month low in heavy trade early on Sunday morning as investors worried about its capital restructuring, while petrochemicals weighed on Saudi Arabian stocks after crude oil prices tumbled.

Dubai’s stock index fell 0.5 percent as DSI dropped 8.6 percent to 0.405 dirham after a shareholder meeting held on Thursday.

Shareholders “unanimously expressed no interest” in a 500 million-dirham ($136 million) capital increase via a new share issue at 1 dirham per share, the company said. It added that Tabarak Investment, a Dubai-based investment firm, had agreed to buy the shares, which would be issued if the securities regulator approved a further capital reduction by DSI.

The company increased its planned capital reduction by up to 722 million dirhams because of potentially unrecoverable receivables, in addition to a previously planned reduction of 992 million dirhams, it said. In 2016 the company made a full- year net loss attributable to owners of the parent of 732.9 million dirhams.

Abu Dhabi’s index dipped 0.3 percent as Dana Gas fell 2.3 percent.

All but two of 14 listed Saudi petrochemical makers fell after Brent crude dropped below $50 at the end of last week. Heavyweight Saudi Basic Industries retreated 1.0 percent; the main market index was down 0.4 percent after 45 minutes of trade.

Saudi Arabian Mining Co (Ma‘aden), however, rose 0.2 percent after the company made a first-quarter net profit of 275.6 million riyals ($73.5 million), up 41.9 percent from a year ago and beating the average analyst forecast of 167.9 million riyals.

Ma‘aden attributed the profit rise to a 20 percent jump in sales volumes of all products and an 18 percent increase in the average price of aluminium.

Qatar’s index lost 0.7 percent, heading for a fourth straight session of declines. Oil rig provider Gulf International Services dropped 3.9 percent to 23.98 riyals, a four-year low. (Reporting by Celine Aswad; Editing by Andrew Torchia, Larry King)

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