Sorouh shares dip as new chairman enters Abu Dhabi developer

Markets Update: Shares in Sorouh Real Estate fell in early trading after it announced it has elected a new chairman to lead its board of directors as the company enters merger talks with rival Aldar Properties.

Shares in Sorouh Real Estate, the Abu Dhabi property firm, fell in early trading after it announced it has elected a new chairman to lead its board of directors as the company enters merger talks with rival Aldar Properties.

Sorouh has appointed Mubarak Matar Al Humairi to the position. Mr Humairi was previously a member of the board, and replaces Saeed Eid al Ghafli in the role.  The new chairman is also on the board at Abu Dhabi-listed Rak Properties.

Aldar and Sorouh last week announced they had received Government blessing to merge. Sorouh shares fell 4.32 per cent  to Dh1.30. Shares in Aldar dropped 5.71 per cent to Dh1.32.

The falls dragged on the wider Abu Dhabi Securities Market General Index. It was down 0.06 per cent to 2,624.30. The Dubai Financial Market General Index was also trading slightly lower at 0.01 per cent down to 1,683.30.

In Saudi Arabia the Tadawul is seen opening higher again today, after breaking through 7,600 yesterday to close at 7,600.57, the highest since September 2008.

Trading volumes on the index have soared in recent weeks in response to a series of positive data releases from the United States which point to some economic recovery in the country.

Saudi Electricity Company, the state owned power utility, announced yesterday on the exchange it plans to offer conventional and Islamic bonds to domestic and international investors.

Markets will be looking for further movement in the oil price this week after April futures on the New York Mercantile Exchange closed up 1.86 per cent to gain $1.95 on Friday, the biggest daily increase for two weeks, on the positive data from the US.

But Christine Lagarde, managing director of the International Monetary Fund, has urged policy makers to avoid becoming complacent amid rising optimism, as oil prices, debt levels, and the risk of slowing growth in emerging markets threaten global economic stability.

"Optimism should not give us a sense of comfort or lull us into a false sense of security," Lagarde said told the China Development Forumin Beijing today, Bloomberg reports. "We cannot go back to business as usual," she said.