Aldar Properties, the most traded stock in Abu Dhabi, fell to its lowest point since the end of March even as the CEO said the company did not need additional government support.
Market ponders MSCI status
Aldar Properties fell to its lowest price in two months even as its chief executive said the Abu Dhabi company needed no additional government support.
Aldar's stock fell almost 3 per cent on the Abu Dhabi Securities Exchange (ADX) General Index to Dh1.34, extending losses it has suffered for much of the past two weeks.
"We are in a stable condition. I don't think there will be a need," said Sami Asad, Aldar's chief executive, quoted by Bloomberg News.
Fund managers and investors said investor sentiment continued to be hurt by euro-zone debt and concerns that the UAE might not be upgraded to emerging-market status by the index compiler MSCI.
"The market here has been directly affected by Europe and America," said Ameed Kanaan, the general manager at AlJazeera 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 ADX slipped 0.6 per cent to 2,616.29 points and the Dubai Financial Market (DFM) General Index retreated 0.2 per cent to 1,544.28.
Tabreed reduced losses it suffered at the opening of trading on the ADX as it closed 3.2 per cent lower at Dh1.22. It fell almost 5 per cent in early trading yesterday, and reached its loss limit of 10 per cent on Monday as Mubadala Development increased its stake in the company.
On the DFM, Drake & Scull International rose 1 per cent to Dh1.01 after the chief executive, Khaldoun Tabari, said the engineering and contracting company expected its revenue to increase between 25 and 30 per cent this year.
The company is also bidding for work at Abu Dhabi International Airport.