Sorouh Real Estate declined at the open today after a local brokerage cut the target price by 16 per cent on the possibility of higher impairments for Abu Dhabi's second biggest developer.
Alembic HC cut its target for Sorouh to Dh1.60, from Dh1.90. Shares fell 1.3 per cent to Dh1.50 at 11 a.m.
Earnings per share estimates for 2010 were cut by 49 per cent as the delivery of Sun and Sky Towers, a key project for the developer, has now been pushed back to later this year.
"Accordingly, to be conservative, we now assume 50 per cent of land receivables are unrecoverable, up from 20 per cent previously. Third quarter numbers showed deterioration in overdue receivables," said Majed Azzam, analyst at Alembic HC, in Dubai.
Other property stocks also fell. Aldar Properties lost 1.4 per cent to Dh2.01 a share.
The Abu Dhabi Securities Exchange General Index added 0.3 per cent to 2686.34.
The Dubai Financial Market General Index lost 0.6 per cent to 1609.20. Losses were led by Shuaa Capital, which fell 3.2 per cent to Dh1.20 a share. Takaful Emarat Insurance fell 2.5 per cent to 73 fils. Al Salam Bank, a Sudanese lender which has a dual listing, lost 2.5 per cent to Dh1.56.
Elsewhere in the region, Kuwait's measure lost 0.1 per cent to 6902.90. Bahrain's measure remained flat at 1424.12. Oman's index gained 0.1 per cent to 6997.92. Qatar's bourse declined 1.2 per cent to 9081.48. The Saudi Tadawul was closed for the day.