Abu Dhabi shares fall to 6-month low

DUBAI — Abu Dhabi shares retreated to the lowest level in six months on investor concern earnings at the emirate’s developers and banks may disappoint.

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By (Bloomberg)

Published: Fri 11 Jun 2010, 11:17 PM

Last updated: Mon 6 Apr 2015, 4:57 PM

Sorouh Real Estate PJSC, Abu Dhabi’s second-biggest property company by market value, declined to the lowest level since March and Arkan Building Materials Co. fell to the lowest in two years. National Bank of Abu Dhabi PJSC, the UAE’s second-largest lender by assets, also dropped. The ADX General Index lost 0.2 percent to 2,519.92, the lowest since Dec. 10. It retreated 2 percent this week, the worst performer among the seven Gulf benchmarks tracked by Bloomberg.

Investors are waiting for “more visibility from second- quarter earnings of real estate and banks,” said Ali Khan, head of cash-equity trading at Dubai-based Arqaam Capital Ltd. “It’s difficult to point to catalysts that will prompt liquidity back to market in the short term.”

Gulf companies will start announcing second-quarter earnings next month. The volume of shares traded on Abu Dhabi’s bourse was 51.7 million today, compared with the six-month daily average of 66.6 million. Dubai’s Real Estate Index has lost 1.8 percent since March 1, while Abu Dhabi’s property measure declined 9.5 percent.

Sorouh Real Estate declined 1 percent to 2.04 dirhams, the lowest since March 4.

The company is expected to report a 36 percent decline in second-quarter earnings, according to one analyst surveyed by Bloomberg.

June 2007 low

Arkan, a construction-supplies maker, slumped 3.4 percent to 1.42 dirhams, the lowest since June 2007.

National Bank of Abu Dhabi retreated as much as 2.4 percent to 9.81 dirhams, before closing 0.6 percent lower. The lender appointed Rüdiger von Wedel as senior general manager of its global wealth business. Von Wedel joins from ABN Amro Bank NV.

Bahrain’s gauge dropped 0.7 percent to 1,401.12, the lowest since at least July 2004, when Bloomberg started tracking the index. The Kuwait Stock Exchange Index slid 0.4 percent.

Qatar’s measure rose 0.8 percent, led by Industries Qatar. Dubai’s DFM General Index and Oman’s MSM30 Index gained 0.1 percent. Saudi Arabia’s market was closed for the weekend.

(Bloomberg)

Published: Fri 11 Jun 2010, 11:17 PM

Last updated: Mon 6 Apr 2015, 4:57 PM

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