Abu Dhabi's top two listed developers say due diligence on merger near completion
Abu Dhabi's top two listed developers Aldar Properties and Sorouh Real Estate will be in focus after they posted third-quarter earnings, also saying due diligence on their merger was "pretty much" complete.
Sorouh Real Estate reported a 54.5 percent rise in third-quarter net profit on Wednesday.
Aldar Properties said third quarter net profit was AED205m, up from AED143.9m in the year-ago period.
"We have positive results from both developers but stock prices are not moving based on fundamentals - they are moving on the merger expectations," says Ali Adou, portfolio manager at The National Investor. "The reaction today will depend on whether investors were expecting an announcement on the merger today."
Globally, US stock futures and the dollar fell on Wednesday and benchmark Treasuries rose as television networks projected President Barack Obama had won re-election, signalling no dramatic shift in US economic policy.
Obama's victory signals positive implications for Middle East geopolitics, analysts say.
"Obama's win would add certainty of economic policy continuity as well as US foreign policy continuity, especially as it relates to our region, which is positive for markets," says Amer Khan, fund manager, Shuaa Asset Management.