Dec. 29 (Bloomberg) -- Abu Dhabi shares advanced the most in three weeks, led by Aldar Properties PJSC after the emirate’s government agreed to buy assets valued at 16.8 billion dirhams ($4.6 billion) to support the company.
Aldar jumped 9.5 percent, the most since December 2010. Sorouh Real Estate Co. surged 7.6 percent. The benchmark ADX General Index climbed 0.8 percent, the most since Dec. 4, to 2,385.54 at 10:44 a.m. in the emirate, trimming its losses this year to 12 percent. Dubai’s DFM General Index rose 0.3 percent.
The agreement “shows the significant support that the government has for Aldar,” said Samer Darwiche, a Dubai-based analyst at Gulfmena Investments. “The market is taking the news very positively.”
Abu Dhabi will purchase 760 homes in the Al Raha Beach development and retire 5 billion dirhams of debt related to infrastructure on Yas Island, Aldar said after the market closed yesterday. It will also buy 5.7 billion dirhams of assets in Central Market, a project in downtown Abu Dhabi, and finance the completion of the district’s redevelopment. Abu Dhabi is the capital of the United Arab Emirates and sits on about 7 percent of the world’s proven oil reserves.
Aldar advanced to 92 fils, trimming its losses this year to 60 percent. The company was hurt when property values slumped in the U.A.E. after banks curtailed lending and speculators pulled out because of the global credit crunch. Sorouh climbed to 85 fils. There are 100 fils to the dirham.
Qatar’s QE Index fell 0.3 percent. United Development Co., an investor in infrastructure and energy, plunged 7 percent to 25.4 riyals after Qatar’s pension fund offered to buy a stake below its trading value.
The Bloomberg GCC 200 Index was little changed. Kuwait’s measure rose 0.1 percent and Oman’s MSM30 Index advanced 0.3 percent. Saudi Arabia’s stock market is closed for the weekend.
--Editors: Shaji Mathew, Daliah Merzaban
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