Property stocks lifted the Abu Dhabi Securities Exchange yesterday as investors speculated that the potential Aldar Properties and Sorouh Real Estate merger will succeed.
Merger rumours lift ADX
Abu Dhabi's stock market rose yesterday, as investors speculated that plans to merge the capital's two biggest property developers would succeed.
Aldar Properties, the developer behind Yas Island and Ferrari World, rose 4.9 per cent to Dh1.07 on the Abu Dhabi Securities Exchange (ADX) General Index. Sorouh Real Estate, the developer behind the Sun and Sky Towers, jumped 5.1 per cent to Dh1.03.
"Investors [are] playing closer attention to the upcoming merger," said Anastasios Dalgiannakis, an institutional trading manager at Mubasher Financial Services in Dubai. Aldar and Sorouh in March said they were preparing a merger study to be put before both boards within the next three months.
The ADX General Index rose 0.2 per cent to 2,468.49. The Dubai Financial Market (DFM) General Index rebounded yesterday, as global markets stabilised after the G8 leading industrialised nations said they wanted debt-ridden Greece to remain in the euro zone.
Tabreed, a district cooling company, jumped 4.9 per cent to Dh1.28. Tamweel, a mortgage company that complies with Sharia rules, rose 3.5 per cent to Dh1.18. The DFM General Index increased 1.4 per cent to 1,488.09.
"Global sentiment remains mostly negative but some stocks have reached depressed valuations, so its natural to see a rebound," Mr Dalgiannakis said.
Elsewhere in the region, Kuwait's measure slipped 0.1 per cent to 6,415.24. Bahrain's index lost 0.2 per cent to 1,146.44. Oman's bourse was largely unchanged at 5,623.22. Qatar's index added 0.2 per cent to 8,423.30. The Saudi Tadawul All-Share Index rose 0.71 per cent to 7,029.35 points.
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