After Aldar rose as high as 9 per cent yesterday on news that it would secure government funding, 23 million shares in the company changed hands today.
Investors take profits after Aldar's gains
Investors booked profits today after gains made yesterday on speculation that Aldar Properties will secure government funding.
Roy Cherry, an analyst at Shuaa Capital based in Dubai, said: "In the near-term, Aldar's shares will continue to be driven by speculation on the funding plan being negotiated with the government." Aldar posted a third quarter loss of Dh731.2m, compared with a profit of Dh270m last year.
"Fundamentally, the company is facing a very challenging period as it is being squeezed between an increasingly distant real estate market recovery and rising debt levels with rapidly approaching maturities," Mr Cherry said.
23 million shares of Aldar changed hands, trading up as much as 3 per cent midday before closing just 0.8 per cent higher to Dh2.31. Shares of Aldar rose as high as 9 per cent yesterday. The Abu Dhabi Securities Exchange General Index added 0.3 per cent to 2765.22.
Positive sentiment in the market pushed other property stocks higher. Sorouh Real Estate, Abu Dhabi's second biggest developer, lost 0.6 per cent to Dh1.66. RAK Properties, based in the emirate of Ras Al Khaimah, remained unchanged at 47 fils.
In Dubai, Emaar Properties, developer of the world's tallest skyscraper, was the most actively traded stock on the Dubai Financial Market exchange. Shares of Emaar lost 0.5 per cent to close at Dh3.75. The Dubai Financial Market General Index lost 0.5 per cent to 1706.39.