DP World shares plummeted 9.88 per cent to a new record low yesterday as the global market meltdown claimed another victim.
The beleaguered multinational closed at $0.73, which is 44 per cent below the $1.30 price subscribers paid in its initial public offering.
The latest decline was on a paltry turnover of $5.2 million (Dh19m), which is a quarter of December’s daily average.
The company’s shares have suffered a torrid time since debuting on the Dubai International Finance Exchange in November, with investors preferring to concentrate on the more active domestic exchanges in Dubai and Abu Dhabi. “The negative investor sentiment globally hits a share like DP World hardest as it is listed on DIFX, which is less liquid than other regional markets,” Jalal Faruki, head of the institutional trading desk at Al Mal Capital, told Dow Jones.
Analysts say DP World has been a victim of circumstance, with its DIFX debut coinciding with feverish speculation over a revaluation of the dirham’s dollar peg. Such a move would have reduced the relative value of DP World’ dollar-denominated shares, so investors have been reluctant to buy the stock.
“The key is get more local investors – there’s abundant liquidity in the region and this needs to be channelled into the DIFX,” said an analyst who did not wish to be named.
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