Local markets picked up on speculation that Aldar Properties will secure government funding.
Markets pick up on Aldar funding speculation
Local markets picked up yesterday on speculation that Aldar Properties will secure government funding.
Aldar, Abu Dhabi's biggest developer, closed ahead 3.2 per cent at Dh2.29 after reaching an intraday peak of 9.5 per cent higher.
Aldar said it was in the final stages of talks with the Abu Dhabi Government about its cash needs. The shares fell by almost 6 per cent in early trading after Aldar posted a Dh1.5 billion loss in the first nine months of this year compared with the same period last year.
The Dubai Financial Market General Index gained 1.3 per cent to 1,715.68 points and the Abu Dhabi Securities Exchange General Index ticked 0.2 per cent higher to 2,755.30.
"Whether the buying interest in Aldar was from investors that thought all negative news had been priced in or if it was because the company will get government funding is yet to be substantiated," said Julian Bruce, the director of equity sales at EFG Hermes.
A disappointing results season and the coming Eid holiday, when trading closes, led investors to take profits, Mr Bruce added.
Shares in Sorouh Real Estate followed Aldar's lead and rose 3 per cent to Dh1.67.
The benefits were felt in Dubai as well, where Emaar Properties, which started the week flat, gained 3.3 per cent to Dh3.77. Arabtec increased 4.2 per cent to Dh1.98.
Elsewhere in the region: Kuwait lost 0.9 per cent to 6,982.20; Bahrain fell 0.1 per cent to 1,454.52; Oman rose 0.05 per cent to 6,565.13; Qatar gained 0.4 per cent to 8,002.20 and the Saudi Tadawul All-Share Index added 0.3 per cent to 6,449.53.