Aldar shareholders fail to vote on merger with Sorouh

Markets Wrap: UAE stocks held steady yesterday even as markets further east fell.

One of the most actively traded stocks yesterday was Aldar Properties,which ended the day flat at Dh1.53. Jaime Puebla / The National

Stocks in the UAE held steady yesterday even as markets further east sank amid concern the United States may scale back economic stimulus and as China ordered increased property curbs.

The Abu Dhabi Securities Exchange General Index rose 0.39 per cent to 3,022.48 points.

One of the most active stocks was Aldar Properties, which ended the day flat at Dh1.53. It followed a shareholders meeting yesterday in which the company failed to get the necessary quorum of shareholders to vote on its proposed merger with Sorouh Real Estate.

Aldar needed holders of 75 per cent of its share capital to be present at an extraordinary general meeting, but fell short of that total, a company spokesman said. A second meeting is now to be held on March 3 at which a quorum of just 50 per cent is needed.

Aldar and Sorouh agreed to merge last month after studying a tie-up for almost a year. Sorouh was headed into its own meeting with investors later yesterday.

In Dubai, the Dubai Financial Market Index edged 0.01 per cent higher to 1,923.13.

Elsewhere, markets in Asia dipped, with the MSCI Asia Pacific Index dropping 1.4 per cent to 133.31. Investor concern focused around worries the Federal Reserve may scale back US economic stimulus and as China said it would raise property limits.

"There are rumours China may tighten the property market, and the central bank has withdrawn liquidity from the capital market the last couple of weeks in China, all these are negative," said Benjamin Tam, a fund manager who helps to oversee about US$1.5 billion at IG Investment in Hong Kong.

* With Dow Jones and Bloomberg News