Bloomberg News

Abu Dhabi Shares Fall Most in 2 Weeks Before Quarterly Earnings

January 06, 2012

Jan. 5 (Bloomberg) -- Abu Dhabi’s shares fell the most in two weeks led by real-estate stocks and banks before companies report quarterly earnings and as global markets declined on concern Europe’s debt crisis is worsening.

Aldar Properties PJSC, Abu Dhabi’s biggest property developer that was bailed out by the emirate’s government last month, dropped to the lowest in more than a week. Dana Gas PJSC decreased 2.2 percent after the company failed to provide details on how it plans to repay $1 billion in debt due in October. Abu Dhabi’s ADX General Index lost 0.7 percent, the most since Dec. 21, to 2,398.76 at the 2 p.m. close in the emirate, bringing its drop for the week to 0.2 percent. The Bloomberg GCC 200 Index slipped 0.2 percent.

“Investors are pulling back before fourth-quarter results and there is generally a lack of catalysts in the markets,” said Waleed Al Khateeb, senior finance manager at Dubai-based Daman Securities LLC. “Some real estate companies may disappoint.”

Sorouh Real Estate PJSC, Abu Dhabi’s second-biggest property developer by market value, may report earnings on Feb. 1. The company missed analysts’ estimates when it posted third-quarter profit on Oct. 31. The shares, which in 2011 slumped 48 percent, retreated 2.5 percent to 79 fils. Developers in Abu Dhabi and Dubai have been hurt after real-estate prices fell more than half since their peak in 2008 as speculative demand waned and banks tightened lending.

Abu Dhabi Commercial Bank PJSC, the emirate’s third-biggest bank by market value, fell the most since Oct. 4, dropping 2.8 percent to 2.76 dirhams.

Europe Worries

The Stoxx Europe 600 Index retreated 0.8 percent at 11;11 a.m. in London and the MSCI AC Asia Pacific Index fell 0.7 percent. UniCredit SpA, Italy’s largest bank, said it will sell new shares in a 7.5 billion-euro ($9.8 billion) offer to strengthen its capital position and Greece’s Prime Minister Lucas Papademos said the country is at risk of a “disorderly default.”

About 31 million shares traded in Abu Dhabi today, compared with a 12-month daily average of about 63 million shares.

Aldar, which obtained 16.8 billion dirhams ($4.6 billion) from Abu Dhabi’s government by selling assets last week, fell 2.2 percent to 89 fils, the lowest since Dec. 28.

Dana Gas declined the most since Dec. 27 to 44 fils. The company said earlier today its board considered updates on financing projects in Egypt and the U.A.E. at a meeting yesterday. It also discussed updates on its stake in Mol Nyrt, without giving further details.

Qatar’s QE Index fell 0.1 percent and Kuwait’s gauge slipped 0.5 percent. Oman’s benchmark stock index gained 0.3 percent, Dubai’s advanced 0.2 percent and Bahrain’s measure rose 0.1 percent. Saudi Arabia’s market is closed for the weekend.

--Editors: Daliah Merzaban, Claudia Maedler

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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