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Wed 4 May 2011 10:44 AM

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Abu Dhabi shares gain on Aldar results speculation; Dubai drops

Aldar, the biggest real-estate company in Abu Dhabi, gains as much as 3.2%

Abu Dhabi shares gain on Aldar results speculation; Dubai drops
STOCK WATCH: UAE markets were mixed in the absence of local catalysts with the market expected to track global markets while property stocks helped lift the Abu Dhabi bourse (Getty Images)

Abu Dhabi’s benchmark stock index
gained the most in a week as Aldar Properties advanced on speculation the
developer’s first-quarter results will exceed forecasts.

Aldar, the biggest real-estate
company in Abu Dhabi, gained as much as 3.2 percent. Union National Bank, the
bank whose shareholders include the governments of Abu Dhabi and Dubai, closed
at the highest level since 2009. The ADX General Index rose 0.4 percent to
2,699.88 at the 2 p.m. close in the emirate. The Bloomberg GCC 200 Index
slipped 0.3 percent at 3:02 pm in Dubai.

“Aldar has been one of the most
liquid stocks for the past two days as we approach their earnings announcement,
" said Hassan El Salah, head of institutional equities at Al Ramz
Securities. ‘‘It’s mostly retail flow betting that the profits from the
infrastructure sale will be booked in the first quarter.’’

The developer agreed to sell assets
including a Ferrari theme park and convertible bonds to the government for AED19.2bn
($5.2bn) to reduce debt in January. Aldar, which reported a full-year net loss
of AED12.7bn, will have ‘‘much better’’ results in 2011, chief executive officer
Sami Asad said April 17. The board will meet tomorrow to review and release
results. The mean estimate of five analysts is for a loss of AED195.8m,
according to Bloomberg data.

Aldar climbed as high as AED1.63,
before closing up 0.6 percent at AED1.59. Union National Bank gained 0.8
percent to AED3.69, the highest since September 2009.

The DFM General Index declined 0.7
percent. Oman’s MSM30 Index lost 0.3 percent and Kuwait’s SE Price Index fell
less than 0.1 percent. Bahrain’s measure dropped 0.7 percent and Qatar’s gauge
slipped 0.2 percent. Saudi Arabia’s Tadawul All Share Index retreated 0.3
percent.

 

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