Markets Wrap: Shares of Abu Dhabi's two biggest developers jumped yesterday after ratings agency Moody's said it placed Aldar Properties under review for an upgrade after it agreed to merge with Sorouh Real Estate.
Shares of Abu Dhabi's Sorouh and Aldar rise
Shares of Abu Dhabi's two biggest developers jumped yesterday after the ratings agency Moody's said it placed Aldar Propertiesunder review for an upgrade after the terms of its proposed merger with Sorouh Real Estate were announced.
"The upgrade offers a signal to investors that other ratings agencies will be looking at reclassifying their debt opinion on Aldar," said Tariq Qaqish, the deputy head of asset management at Al Mal Capital in Dubai. "It's positive news."
About 55 million shares of the two companies were traded, compared with 95 million shares for the broader market.
"Moody's review for upgrade reflects its assessment that the proposed Aldar-Sorouh merger will be credit-positive, given that the combined group will have a stronger and more conservatively positioned financial profile," the Moody's analyst Martin Kohlhase said in a statement on Tuesday.
The local exchanges will be closed today in observance of the Prophet Mohammed's birthday, according to statements on their respective websites. They will resume trading on Sunday.
Elsewhere in the region, Kuwait's measure inched 0.1 per cent higher to 6,202.65.
Bahrain's index slipped 0.2 per cent to 1,070.44 points; Oman's measure fell 0.3 per cent to 5,819.63; Qatar's QE Index added 0.3 per cent to 8,652.86.
The Saudi Tadawul All-Share Index fell 0.1 per cent to 6,998.34.