Renaissance — one of the biggest oil services companies in the Middle East — discovered evidence of fraud and ethical misconduct at one of the Topaz subsidiaries abroad, centered around the use of $2.9 million of cash in the business, it said.It also reported a 77-percent plunge in first-half net profit.

The stock plunged 10 percent to its lowest close since July 2009.

“I see it (Topaz) being directly run by Renaissance for the next couple of quarters at least as this serious business and management can’t afford to get this wrong,” said Ibrahim Masood, senior investment officer at Mashreq bank.

“From an initial read of statement, its not comprehensive in terms of exactly what the serious issues were at Topaz and I think that we will continue to hear more about this as we go forward.”

Oman Telecommunications Co. supported the index, rising 1.1 percent. Al-Anwar Ceramic Tiles Co. climbed 2.2 percent.Muscat’s benchmark ended flat.

In the UAE, both Dubai and Abu Dhabi bourses ended lower with investors wary of building positions in the current uncertain global backdrop.

Dubai’s index fell 0.6 percent, taking year-to-date losses to 9.8 percent and Abu Dhabi’s measure eased 0.02 percent.

“After a high volatility week in UAE markets last week, investors are waiting for news from Europe and US markets and searching for signs of market stability,” said Ashraf Abu Shakra, equity portfolio manager at Al-Mal Capital.

“They are also looking for a base to start accumulating from a new foundation.”

Emaar Properties led the fall by turnover in Dubai, slipping 0.4 percent. Telecoms operator Du shed 1.3 percent.Etisalat was the main drag in Abu Dhabi, closing 0.5 percent lower. Aldar Properties declined 0.8 percent and Abu Dhabi Commercial Bank slipped 0.7 percent.Elsewhere, Qatar’s index also ended flat at 8,114 points.

Qatar Telecom (Qtel) gained 0.7 percent after reporting an 18-percent-rise in net profit, in line with analysts’ forecasts.

Kuwait’s measure edged up in late trade, closing 0.2 percent higher.Logistics firm Agility lost 0.8 percent after posting a 57-percent drop in second-quarter net profit, but still slightly beat forecasts on Sunday.