Shares in Aldar Properties, Abu Dhabi's biggest developer, have rallied after expectations rose that the company may secure funding from the government.
Speculation on Aldar bail-out fuels markets
Local markets picked up today on speculation that Aldar Properties will secure government funding.
Stocks in Abu Dhabi's biggest developer closed 3.2 per cent to Dh2.29, after reaching an intraday high of 9.5 per cent. Aldar said it is in "the final" stages of talks with the Abu Dhabi Government about its cash needs.
But the shares also fell by nearly 6 per cent in early trading after the company posted a Dh1.5 billion loss in the first nine months of this year.
The Dubai Financial Market (DFM) 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.
A disappointing third quarter results season and the upcoming Eid holiday, when trading closes, led investors to profit take and the market to pull back from previous highs, he added.
Shares in Sorouh Real Estate followed suit and rose 3.08 per cent to Dh1.67. The benefits were felt in Dubai where Emaar Properties, which started the week flat also gained 3.3 per cent to Dh3.77 and Arabtec increased 4.2 per cent 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 6565.13; Qatar gained 0.4 per cent to 8002.20 and the Saudi Tadawul All-Share Index added 0.3 per cent to 6449.53.