Low oil weighs on Gulf stocks; Dubai contractors plunge

Stock markets in the Gulf slumped on Sunday as weak oil prices and corporate updates from key firms weighed on the region’s main indexes.

Dubai’s benchmark index dropped 1 percent to close at 3,384 points as two of the emirate’s biggest contractors shed over 9 percent each.

The advance-decline ratio stood at 6-26.

Drake and Scull International (DSI) lost 9.9 percent to reach AED 0.399 – lowest in over a year – following its shareholders meeting on Thursday, during which the contractor sought approval for its capital restructuring program.

The loss-making company, which had earlier proposed capital reduction of AED 992 million, is seeking further capital reduction of AED 722 million due to “potentially unrecoverable receivables,” it said in a bourse statement.

Meanwhile, Arabtec Holding plunged 9 percent to AED 0.755. The stock had climbed on Thursday after the firm reported its first quarterly in profit since 2014 in Q1 this year.

Emaar Properties lent support as it rose 0.3 percent to AED 7.3.

In Abu Dhabi, the general index lost 1 percent to close at 4,570 points. Energy firms took a beating, with TAQA down 3.4 percent at AED 0.57 and Dana Gas down 4.6 percent at AED 0.42. Other blue chips also declined: First Abu Dhabi Bank fell 0.9 percent to AED 11.4 and Etisalat slipped 1.1 percent to AED 17.55.

Elsewhere, Qatar’s QE index fell 1.1 percent to 9,834 points and Kuwait’s price index dropped down 2.8 percent to 6,565 points.

Saudi Arabia’s Tadawul All Share Index was last trading down 0.9 percent.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com