Aldar plunges to fresh five-year low
Dubai, January 25, 2011
Aldar Properties, which has made a loss for four straight quarters, plunged to a new five-year low in Dubai trading. Aldar dropped 4.2 per cent to Dh1.82, its lowest finish since at least April 2005.
The slumping real estate prices were likely to further dampen sentiment for the indebted developer.
The state-linked firm's shares have plunged since it unveiled a restructuring plan dilutive to shareholders.
Aldar's management has indicated it will repay about Dh12 billion ($3.27 billion) in debt by 2013, says Jad Abbas, EFG-Hermes real estate analyst.
A Reuters poll last week forecast oversupply would cause Abu Dhabi and Dubai house prices to make further double-digit declines, with the latter's prices already about 60 percent below a 2008 peak.
'I don't think we will see a recovery in the UAE real estate sector in 2011 - there is still more supply coming on stream, putting pressure on prices and rents, but we need to differentiate between Dubai and Abu Dhabi,' says EFG's Abbas. 'Dubai is further down the cycle and I think Abu Dhabi has further to go.'
Abu Dhabi's index dropped 0.3 per cent to 2,667 points, its lowest close since October 5.-Reuters