Stock markets see maul of the emirates

Ben Roberts , May 26th, 2010

The leading developers in the UAE took a battering yesterday as the DFM Index and Abu Dhabi’s ADX General index continued to slide on uncertain international market news.

Deyaar Development, Emaar Properties and Arabtec Holdings PJSC looked to be racing each other to the bottom as shares fell 9.7%, 7.82% and 7.11% respectively. At market close the three developers were worth AED3.34, AED3.3 and AED2.09 per share respectively.

The DFM index closed down 4.6% at 1.577, nearing the low point of 1,533 on 9th December last year. It continues a tumultuous slide for the exchange in the last six weeks following protracted talks over the restructuring and repayment programme of state-owned conglomerate Dubai World and its developer subsidiary, Nakheel. Abu Dhabi’s exchange closed down 3.1%.

At the end of last week around 60% of creditors to Dubai World were said to be on board with a new payment plan that divides lenders into tranches and gives options in the way they wish to be repaid. Concerns over the European debt crisis, in particular the move among the biggest EU countries to provide emergency funding for Greece, have also filtered into the GCC.

Deyaar has seen its value almost half since the start of the year since beginning January at AED0.62. The company, yet to release its first quarter 2010 results, posted net profits of AED337 million for 2009, AED207 of which was attributable before its IPO intake.

Emaar stock has fallen 7.61% over the last month, seeing a high and low of AED4.15 and AED3.56 respectively. Arabtec Holdings PJSC, which this week has entertained rumours of a resurrected takeover bid by Aaber Investments, has fallen almost 10% over the last four weeks, dropping as low as AED2.23.

Kuwait-Dubai dual listed developer Al Mazaya fell more than 7.5% to reach KD98 from a market opening price of KD102. Drake & Scull International, the MEP giant, saw just over 3% knocked off its share price, closing at AED0.85, down from 0.88. The company, which distributed 7% cash dividends, has seen its share price fall 4.3%

In Abu Dhabi, Aldar Properties fell 7.8% to close at AED3.19 from AED3.33. The company’s share value has fallen more than 30% (31.9%) since the 29th March.