x Abu Dhabi, UAESunday 23 July 2017

Cold shoulder for cooling company on bourse after Mubadala stake rises

Markets Update: Tabreed, Abu Dhabi's district cooling company, fell to its lowest point in six weeks, extending another day of losses - with video.

Tabreed, the air conditioning company extended losses at the open as it fell to its lowest level for six weeks in Dubai this morning.

It slipped 4.8 per cent to Dh1.20 on traded shares of 1.5 million, making it the most heavily traded stock on Dubai's index at the open.

On Monday, shares in the company hit their limit as they fell 10 per cent as Mubadala Development increased its stake in the company.

Mubadala has played a large part in helping to revive the fortunes of Tabreed after it become embroiled in debt during the global downturn.

Drake & Scull International expects its revenue to increase between 25 per cent to 30 per cent this year, chief executive Khaldoun Tabari said this morning, according to Bloomberg News.

The engineering and contracting company is also bidding for electrical equipment and mechanical work in Abu Dhabi airport, he said.

Shares in the company were unchanged at Dh1.

UAE bourses struggled to gain momentum as concern over Europe's debt continued to prompt investors to sit on their positions or sell their shares.

"The market here has been directly affected by Europe and America," said Ameed Kanaan, general manager at Al Jazira Financial Services.

"I think in the next couple of weeks we'll experience increased losses, particularly if [the MSCI] upgrade doesn't happen," he said.

The wider Dubai Financial Market General Index was flat at 1,545.94 points and the Abu Dhabi Securities Exchange General Index slipped 0.6 per cent at 2,616.42 points.

Banking stocks dragged on shares in the capital as Abu Dhabi Commercial Bank, First Gulf Bank and Abu Dhabi Islamic Bank all slumped.

Shares in those companies retreated 3.6 per cent to Dh2.7, 0.8 per cent to Dh17.8 and almost 1 per cent to Dh3.06.