Big merger talk drives stocks on Abu Dhabi's market

Markets Update: Investors poured money into Abu Dhabi's stock market amid re-assurances of a promised update over a potential merger of the capital's two biggest property developers.

Aldar Properties jumped 4.8 per cent to Dh1.34 yesterday. Above, the company's headquarters in Abu Dhabi. Sammy Dallal / The National

Investors poured money into Abu Dhabi's stock market amid re-assurances of a promised update over a potential merger of the capital's two biggest property developers.

Aldar Properties jumped 4.8 per cent to Dh1.34 yesterday, while Sorouh Real Estate surged 5 per cent to Dh1.26. The Abu Dhabi Securities Exchange General Index gained 1.1 per cent to 2,634.92.

Sorouh's managing director, Abu Bakr Seddiqi Al Khoury, said he expected an update about the possible merger with Aldar "in a months". The two companies have been in talks since March.

"The news about Aldar and Sorouh created more momentum," said Tariq Qaqish, the deputy head of asset management at Al Mal Capital in Dubai.

"The market looks good."

Eshraq Properties was unchanged at 34 fils after the Abu Dhabi-listed developer announced it bought a hotel in the Dubai Marina area. Eshraq's shares rose as much as 3 per cent during the session but slowly erased gains towards the close.

Eshraq said it struck a "successful deal with Emaar Properties to acquire" Nuran Marina Hotel Apartments.

The Dubai Financial Market General Index surged 1.9 per cent to 1,608.94.

Elsewhere in the region: Kuwait's measure slipped 0.1 per cent to 5,974.68; Bahrain's index lost 0.7 per cent to 1,078.72; Oman's MSM 30 Index gained 0.5 per cent to 5,562.91; Qatar's QE Index gained 0.15 per cent to 8,522.68.

The Saudi Tadawul All-Share Index closed 0.6 per cent higher to 6,882.1.