Developers surge to give overall lift to region
Aldar, Emaar and Arriyadh stocks lead rebound out of Ramadan slump
Developer stocks rebounded across the Gulf on Wednesday to lift most stock markets after an August that saw thinner trading volumes and a bearish view on project-based firms.
Aldar Properties, Abu Dhabi’s biggest developer, led the rise with an advance on its stock price of more than 1.7% to close at AED2.28. Last week the company was boosted by the improved price of its sukuk debt on speculation the government would support the company. Aldar began August trading at AED2.42.
RAK Properties’ stock remained off-limits ahead of its board meeting scheduled for 8th September, along with Union Properties, which last week agreed to sell its Ritz-Carlton hotel development at a steep discount, according to newswires. The stock exchange of the UAE’s biggest emirate declined 0.05%, however, to 2,490.
In Dubai, the stock exchange rose 0.4% to 1,493 as Emaar Properties PJSC advanced 0.6% to AED3.28. Deyaar Developments gained 0.3% to 29 fils.
In Saudi Arabia, the Tadawul saw rises in the share values of Jabal Omar Development Company, Arriyadh Development Company and Makkah Construction & Development Company – up 0.27%, 0.7% and 0.35% respectively. Dar Alarkan, which develops both residential and commercial buildings, gained 0.46% to SR10.8.Both the real estate and construction indices of the stock exchange rose to help lift the overall exchange to 6,158, up 0.86%, and is now closed for the weekend.
In Kuwait, dual listed Al Mazaya Holding gained just over 1% to KD2.2, though its fellow developer Grand Real Estate Projects slipped 2.1% to KD22.5, dragging the Kuwait Stock Exchange down to 6,679, down 0.16%.
In Qatar, the exchange was up 0.3% though Barwa Real Estate, developer of Barwa City in the capital Doha, lost 0,3% to QR31.3. Oman’s Muscat Securities Index rose to 6,259.