Arabtec shares shed on MSCI index downgrade

16/11/2016 05:56 AST

Arabtec Holding shares fell to their lowest level in about nine months after being downgraded by index provider MSCI.

The construction company’s shares fell 4.7 per cent, their steepest one-day fall since late June, after MSCI announced it had moved the shares to its Emerging Markets (EM) Small Cap Index from their previous position in the EM Standard Index.

Arabtec’s place on the main index was taken by DXB Entertainments. The parks and resort operator’s shares led gains in Dubai on the news, closing up 2.68 per cent to Dh1.53.

MSCI also announced the removal of Dubai Financial Market’s shares from the Standard Index. DFM’s shares ended the day unchanged at Dh1.10.

The Dubai Financial Market General Index traded in positive territory for much of the day, but closed 0.2 per cent lower at 3,196.62 as investors booked profits late in the day.

Drake and Scull International shares hit their highest level in seven weeks, rising 15 per cent to 50.6 fils.

In Saudi Arabia, the Tadawul closed 2 per cent lower, after reports that the country’s Public Investment Fund may offload about US$100 billion worth of local equities to raise funds for overseas asset purchases.

Retail shareholders booked profits from the Tadawul’s recent bull run ahead of next month’s budget announcement, together with uncertainties over the prospect of an oil production deal at this month’s Opec meeting in Vienna.

The Abu Dhabi Securities Exchange closed 0.1 per cent lower at 4,180.83, owing to a 1.27 per cent drop by FGB. NBAD was the pick of the gainers, climbing 3.06 per cent to Dh8.77.

The National