x Abu Dhabi, UAEMonday 22 January 2018

Tabreed shares take early hit on bourse

After cancelling 970 million shares in a bid to raise the value of its stock, Tabreed - also known as the National Central Cooling Company - today took a hit in early trading as UAE bourses digested the news.

Shares in Tabreed fell in the first day of trading after the company cut its share capital in an effort to eventually raise more money.

The company, also known as National Central Cooling Company, saw its share price fall 3.1 per cent to Dh2.00.

It has been trading at around 40 fils, but last week cancelled 970 million shares to lift its stock price high enough to issue new shares.

Local regulations forbid a company from issuing new shares if it trades under Dh1. Last week's move raised some concerns that an imminent capital raising would dilute shareholders.

The Dubai Financial Market (DFM) General Index rose 0.1 per cent to 1,695.16 points and the Abu Dhabi Securities Exchange General Index ticked 0.03 per cent higher to 2,762.53 points.

Property stocks reversed last week's highs as Aldar Properties, Abu Dhabi's biggest developer, lost 2 per cent to Dh2.45 and Arabtec retreated 1.4 per cent to Dh2.04.

Aldar last week gained the most in five weeks on speculation that the builder will secure government funding.

Oil was down 0.6 per cent to $87.790 per barrel on the New York Mercantile Exchange.

OPEC has dismissed last week's $90 oil price as a "blip" and Saudi oil minister Ali al Naimi said the range of $70 and $80 a barrel is a good price.