* Arabtec tanks by daily limit on massive Q4 net loss
* Gulf Navigation drops despite stronger net profit
* Abu Dhabi's Eshraq Properties slumps after swinging to net
* Saudi's Alhokair up on appointment of new chief executive
* Egypt's Juhayna, Domty up on news of new local sugar
By Celine Aswad
DUBAI, Feb 13 A slump in shares of Dubai's
Arabtec dragged Dubai's stock market lower on
Monday after the builder reported a larger fourth-quarter net
loss, while other markets were mixed.
Dubai's index dropped 1.8 percent, its largest
single-day decline since October 2015, after Arabtec plummeted
by its 10 percent daily limit having reported a net loss of
2.95 billion dirhams ($803 million) in the three months to Dec.
The loss was far larger than the loss of 272.8 million
dirhams forecast by EFG Hermes and the loss 403.74 million a
Arabtec also said its board approved a proposed capital
restructuring and a 1.5 billion dirhams rights issue, pending
investor consent at the next general shareholders' meeting.
Mohammed Ali Yasin, managing director of brokerage at NBAD
Securities, told Reuters he believed the loss reflected measures
taken across government-related entities.
"This deceleration is the result of the due diligence
between IPIC and Mubadala. They looked at the Abbar
subsidiaries, which Arabtec is a part of, and they forced them
to take the true provisions and impairments to start on a clean
slate," said Yasin.
In January Abu Dhabi's government merged two of its top
investment funds Mubadala Development Co and International
Petroleum Investment Co (IPIC) to create Mubadala Investment Co,
to strengthen their financial clout in an era of low oil prices.
Elsewhere commodities shipper Gulf Navigation fell
3.6 percent despite reporting a 20 percent rise in
fourth-quarter net profit, according to Reuters calculations.
Full-year net income came in at 136.6 million dirhams, almost
six times the figure for 2015.
In neighbouring Abu Dhabi the stock index edged down
0.1 percent, with Eshraq Properties dropping by its 10
percent daily limit after it swung to a full-year net loss of
575 million dirhams in 2016, versus a net profit of 1.61 million
The mid-sized developer said it had booked an impairment of
593 million dirhams on land values in 2016.
Dana Gas, which reported a drop in earnings last
week, fell 7.8 percent.
Saudi Arabia's index added 0.5 percent in thin trade
with advancing shares outnumbering decliners 95 to 52.
Most mid-sized petrochemical producers were bid up, as Brent
futures traded around $56.50 a barrel. Saudi Industrial
Investment Group climbed 2.9 percent.
Apparel retailer and mall operator Fawaz Alhokair
added 4.1 percent on announcing the appointment of a new chief
executive, Atul Singh, effective April 1.
Shares in Saudi Airlines Catering rose 2.3 percent
after it signed a 44 million riyals ($11.7 million) contract
with Saudi Airlines to construct and manage the first-class
lounge at Cairo International Airport. The contract is for five
years and the positive impact of the deal will be reflected in
the second quarter of 2017.
Egypt's main index fell 1.4 percent with 80 percent
of the most-traded shares retreating. Investment bank EFG Hermes
fell 2.6 percent.
Shares of food producers outperformed on news that they will
benefit from sourcing sugar locally. Egypt's Al Nouran sugar
production facility is due to start operations in May. The
facility will be the largest beet sugar production line in Egypt
at 14,000 tonnes a day capacity.
Arabian Food Industries (Domty), maker of sweet
drinks, surged 8.5 percent and Juhayna Food Industries
, maker of yoghurts, rose 2.7 percent.
Sugar had become scarce in Egypt in recent months and the
government took control of stocks to counter what it said was an
epidemic of hoarding by merchants reacting to rising prices amid
a shortage of foreign currency.
* The index rose 0.5 percent to 7,060 points.
* The index dropped 1.8 percent to 3,638 points.
* The index edged down 0.1 percent to 4,564 points.
* The index gained 0.1 percent to 10,671 points.
* The index lost 1.4 percent to 12,740 points.
* The index added 0.3 percent to 6,657 points.
* The index edged down 0.06 percent to 5,815 points.
* The index inched down 0.1 percent to 1,308 points.
(Editing by Andrew Torchia and David Holmes)