Abu Dhabi's Aldar Properties slumped to a record low on Tuesday, on talk that a major government stakeholder could delist the developer, and Egyptian stocks fell as continued clashes between police and protesters unnerved investors. Shares in Aldar fell 2.3 percent to 0.84 dirham, their lowest price since the stock began trading in 2005. It's year-to-date losses extended to 63 percent, underperforming the Abu Dhabi market, which is down 12.7 percent this year.
Aldar's share price was diluted on Thursday after it converted a portion of bonds held by the government's Mubadala Development Co into shares. It takes Mubadala's stake in the developer to nearly 60 percent. Abu Dhabi's government bailed out Aldar in early 2011, with a $5.2 billion rescue package in exchange for 2.8 billion dirhams ($762 million) in convertible bonds to Mubadala and sale of assets including Ferrari World theme park.
"There are rumors that Mubadala has the intention of increasing its ownership in Aldar even more and then trying to delist it like what happened to Aabar," said Joseph Kawkabani from Franklin Templeton Investments Middle East. Abu Dhabi-listed Aabar Investment was taken private by parent International Petroleum Investment Co in 2010.
Abu Dhabi's index fell 0.8 percent to its lowest finish since March 2009. Sorouh Real Estate also declined, down 1.2 percent. Dubai's benchmark fell 1 percent to its lowest close since November 27. Lender Emirates NBD dropped 4.1 percent in heavy trading. Contractor Arabtec slipped from Monday's 13-month high, down 5.2 percent. Elsewhere, Egypt extended its declined to a one-month low as clashes between police and protesters entered a fifth day.
Cairo's index fell 2.5 percent to its lowest close since November 22. All but two of the 30 shares on the index fell, with Commercial International Bank dropping 5.4 percent, and heavyweight Orascom Construction losing 3 percent. In Saudi Arabia, the benchmark edged higher by 0.2 percent, helped by buying in cement stocks.
Saudi Cement rose 2.7 percent and Eastern Province Cement gained 5.7 percent. In Qatar, the index gained 0.4 percent, making its largest one-day gain in two weeks in a technical rebound. It has support at 8,740 points and is expected to challenge its next resistance level of 8,843 points.