Aldar Properties PJSC and Sorouh Real Estate Co. led gains in Abu Dhabi’s real estate stocks on investor speculation the emirate’s biggest developers may next week report improved full-year results.
Aldar, the biggest developer in Abu Dhabi, advanced 3.2 percent, the most since Feb. 5, to 97 fils, at the 2 p.m. close in the emirate. Sorouh, the second largest, jumped 3.4 percent to 92 fils, the highest since Dec. 11. The stocks were the most traded in Abu Dhabi’s ADX General Index, which rose 0.1 percent. The ADX Real Estate Index advanced 3.1 percent.
Aldar, which obtained 16.8 billion dirhams ($4.6 billion) from Abu Dhabi’s government by selling assets in December, may post a 2011 profit of 494 million dirhams after a loss of 2.4 billion dirhams the year earlier, according to the mean estimate of eight analysts on Bloomberg. Sorouh, whose shares have slumped 33 percent in the past year, may report next week full-year profit almost tripled to 379 million dirhams, according to the mean estimate of six analysts on Bloomberg.
“Sentiment for real-estate stocks has improved slightly as soon to-be-announced earnings are expected to be substantially better for both Aldar and Sorouh,” said Ziad Dabbas, a financial analyst at National Bank of Abu Dhabi PJSC, the United Arab Emirates’ second-biggest bank by assets. “We are seeing some foreign flows into the stocks as interest has been renewed.”
Abu Dhabi, the oil-rich emirate transforming itself into a business and cultural hub, plans to resume projects including branches of the Louvre and Guggenheim museums after reviewing their viability, the government said in January. The executive council approved the building of 13,150 homes for United Arab Emirates citizens in North Al Wathba. Another 7,608 villas are expected to be completed in 2012 and handed to the government.
Six analysts recommend investors buy Aldar shares, three say hold and four have a sell rating, according to Bloomberg data. Ten analysts recommend buying the shares of Sorouh, four holding them and one selling them.