Markets Wrap: Abu Dhabi’s Aldar Properties jumped to the highest level in almost four months as investors bought up shares in the developer in anticipation of better than expected second-quarter results.
Aldar Properties close to four-month high
Abu Dhabi’s Aldar Properties jumped to the highest level in almost four months as investors bought up shares in the developer in anticipation of better than expected second-quarter results.
Aldar rose 3.5 per cent to Dh1.20, the highest level since April 10. The developer behind Yas Island and Ferrari World is weighing a US$15 billion merger with Sorouh Real Estate, the emirate’s second-biggest developer behind Aldar.
Last week, Sorouh reported a 34 per cent increase in net income to Dh148.2 million, exceeding analyst estimates. Emaar Properties’ quarterly results surged 45 per cent to Dh614m, also topping estimates.
“Investors expect Aldar will have a higher profit than the same period last year,” said Wadah Al Taha, the chief investment officer at Al Zarooni Group, an investment company in Abu Dhabi. “Aldar is catching up after several property companies rallied earlier this week.”
The Abu Dhabi Securities Exchange General Index slipped 0.3 per cent to 2,507.81.
Trading was lukewarm on the Dubai Financial Market General Index as Ramadan got underway.
“Trading volumes are below the average,” Mr Al Taha said.
Tabreed fell 2.3 per cent to Dh1.27, even as the district cooling company reported a 32 per cent increase in profit to Dh57.9m. Arabtec Holding, one of the region’s biggest contracting firms, added 0.3 per cent to Dh2.97.
The highest trading volume was for Drake & Scull International, which closed unchanged at 90 fils.
Elsewhere in the region: Kuwait’s measure added 0.03 per cent to 5,723.61; Bahrain’s index slipped 0.2 per cent to 1098.12; Oman’s MSM 30 Index added 0.6 per cent to 5464.73; and Qatar’s QE Index added 0.1 per cent to 8332.35 points.
The Saudi Tadawul exchange was closed for the day.