Aldar funding speculation sparks frenzied day of trade

Investors book profits on ADX and DFM after market gains driven by property stocks the day before.

Investors cashed in on Aldar shares yesterday.

Investors booked profits yesterday after gains made the previous day on speculation that Aldar Properties will secure government funding.

"In the near-term, Aldar's shares will continue to be driven by speculation on the funding plan being negotiated with the Government," said Roy Cherry, an analyst at Shuaa Capital in Dubai. Aldar posted a third-quarter loss of Dh731.2 million, compared with a profit of Dh270m in the same period last year.

"Fundamentally, the company is facing a very challenging period as it is being squeezed between an increasingly distant real estate market recovery and rising debt levels with rapidly approaching maturities," said Mr Cherry.

About 23 million Aldar shares changed hands, trading up as much as 3 per cent by midday before closing just 0.8 per cent higher at Dh2.31. Shares of Aldar rose as high as 9 per cent on Tuesday. The Abu Dhabi Securities Exchange General Index added 0.3 per cent to 2,765.22.

Other property stocks were also targets of profit taking. Sorouh Real Estate, Abu Dhabi's second-biggest developer, lost 0.6 per cent to Dh1.66. RAK Properties, based in Ras al Khaimah, remained unchanged at 47 fils.

Emaar Properties, the developer of the Burj Khalifa, the world's tallest building, was the most actively traded stock on the Dubai exchange. Shares of Emaar lost 0.5 per cent to close at Dh3.75. The Dubai Financial Market General Index lost 0.5 per cent to 1,706.39.

Elsewhere in the region, Kuwait's measure gained 0.2 per cent to 6,996.40 and Bahrain's index lost 0.4 per cent to 1,447.68. Oman's bourse rose 0.2 per cent to 6,578.71 and Qatar's index moved 0.4 per cent higher to 8,040.78. The Saudi Tadawul All-Share Index lost 0.1 per cent to 6,443.61.