x Abu Dhabi, UAEFriday 28 July 2017

Aldar chief says company is in 'stable condition'

Market Wrap: Aldar Properties, the most heavily traded stock in Abu Dhabi fell almost 3 per cent even as its CEO said the company did not need further government support

How the ADX closed on May 24, 2011.
How the ADX closed on May 24, 2011.

Aldar Properties was one of the biggest losers on the Abu Dhabi market in afternoon trading even as its chief executive said the company needs no additional government support.

Shares in the construction developer fell almost 3 per cent to Dh1.34, extending losses it has suffered for majority of the last two weeks.

"We are in a stable condition, I don't think there will be a need," said the chief executive of Aldar Properties, Sami Asad.

Fund managers and investors said concerns that the UAE may not be upgraded to emerging market status by index compiler MSCI and Eurozone debt woes continued to drag on investor sentiment.

"The market here has been directly affected by Europe and America," said Ameed Kanaan, general manager at Al Jazira Financial Services.

"I think in the next couple of weeks we'll experience increased losses, particularly if [the MSCI] upgrade doesn't happen," he said.

The Abu Dhabi Securities Exchange slipped 0.6 per cent to 2,616.29 points and the Dubai Financial Market General Index retreated 0.2 per cent to 1,544.28 points.

Tabreed, the air conditioning company pared losses it suffered at the open as it closed down 3.2 per cent to Dh1.22.

It had fallen almost 5 per cent in early trade.

On Monday, shares in the district cooling company hit their limit as they fell 10 per cent as Mubadala Development increased its stake in the company.

Drake & Scull International expects its revenue to increase between 25 per cent to 30 per cent this year, chief executive Khaldoun Tabari said this morning, according to Bloomberg News.

The engineering and contracting company is also bidding for electrical equipment and mechanical work in Abu Dhabi airport, he said.

Shares in the company rose 1 per cent to Dh1.01.