Aldar Climbs to Three-Year High on Results Bet: Abu Dhabi MoverZainab Fattah
Aldar Properties PJSC rose to the highest in more than three years on investor bets Abu Dhabi’s largest property developer will report better-than-expected earnings after acquiring a competitor in June.
The shares, which have more than doubled this year, jumped 7.7 percent to 2.95 dirhams, the highest since June 2010, at the close in the emirate. The stock was the biggest gainer on Abu Dhabi’s ADX General Index, which increased 0.2 percent, bringing the gauge’s surge in 2013 to 49 percent.
Aldar completed the acquisition of Sorouh Real Estate Co. in June, creating a company with $13 billion in assets, and is set to announce this week the first earnings for the combined entity. The company will report on Aug. 6 second-quarter profit of 335 million dirhams ($91 million), according to Securities and Investment Co. estimates on Bloomberg, after profit of 154.3 million dirhams in the first quarter. Emaar Properties PJSC on July 29 said second-quarter earnings rose 10 percent, beating analysts’ estimates, as Dubai’s largest developer completed previously delayed projects.
“Investors are anticipating a positive surprise when the earnings come out at a time that real estate sentiment has been helped by Emaar’s results,” said Mohammed Ali Yasin, managing director of NBAD Securities in Abu Dhabi. “The overall momentum is more technical than fundamental, as speculators are trying to break the 3-dirham level amid lower resistance” as most traders have exited ahead of the Eid Al Fitr holiday.