Markets Wrap: Abu Dhabi’s stock market rose for a sixth day after the capital’s two biggest developers made progress towards a US$15 billion merger deal.
Abu Dhabi's bourse lifts after Aldar-Sorouh merger move
Abu Dhabi’s stock market rose for a sixth day after the capital’s two biggest developers made progress towards a US$15 billion merger deal.
Aldar Properties and Sorouh Real Estate in a joint statement announced they had appointed investment banks and corporate law firms to undergo due diligence and valuation studies for a possible merger.
Aldar advanced 0.8 per cent to Dh1.14, while Sorouh Real Estate gained 0.9 per cent to Dh1.06.
The Abu Dhabi Securities Exchange (ADX) General Index rose 0.3 per cent to close at 2,463.38.
Smaller capitalised stocks accounted for more than a third of the overall trading activity on the Dubai Financial Market (DFM) General Index as traders sought to make quick gains from stocks that have room to rise in price.
Tamweel, a mortgage company complying with Sharia rules, gained 6 per cent to Dh1.22 a share. Tabreed, a district cooling company, gained 5.7 per cent to Dh1.29.
The DFM index gained 1 per cent to close at 1,483.00. The index rose as much as 30 per cent earlier this year, but has erased two thirds of its gains. The index is up 9.5 per cent from January 1.
“We are reaching technical rebound levels and it seems that the correction has been overstated,” said Haissam Arabi, the chief executive at the assetmanager Gulfmena Investments in Dubai.
Elsewhere in the region, Kuwait’s measure slipped 0.6 per cent to 6,072.36. Bahrain’s index lost 0.2 per cent to 1,135.01. Oman’s MSM 30 Index also lost 0.2 per cent to 5,743.69. Qatar’s QE Index added 0.1 per cent to 8,315.23.
The Saudi Tadawul All-Share Index gained 0.6 per cent to 6,790.96 points.
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