03/11/2010
Aldar shares plunge after CEO quits
Aldar Properties tumbled to a seven-week low on Tuesday after the developer's chief executive resigned, weighing on Abu Dhabi's index.
Most Middle East markets fell, tracking hesitant global bourses as investors await a US Federal Reserve meeting, which is expected to launch a fresh bout of quantitative easing.
Aldar fell 6.2 percent to 2.40 dirhams, its lowest finish since Sept. 15 and biggest decline since Aug. 8. The firm's Chief Executive John Bullough has retired, a spokesman said on Monday.
Aldar previously said it would unveil a financing plan to ease stresses on its balance sheet and support its capital expenditures, with an estimated 14 billion dirhams of debt maturing in 2011.
Aldar is forecast to report a third-quarter loss of 231 million dirhams ($62.9 million), in what would be its fourth straight quarterly loss.
Abu Dhabi's measure fell 1.4 percent to 2,764 points, its biggest drop since June 1, while property stocks also sent Dubai's index tumbling.
The Tadawul All-Share Index (TASI) closed 0.14 percent higher at 6,372.71 on Tuesday. The sector activity for the day was mixed with 8 gaining sectors against 6 losing sectors. The gaining sectors ranged from 0.24 percent by the Transport sector to 0.61 percent by the Hotel & Tourism sector. The overall market breadth for the day was positive with 50 advancers against 74 decliners giving it an AD ratio of 0.67, the Financial Transaction House (FTH) said in its daily market commentary.
The stock market turnover reached SR2.78 billion on Tuesday. Zain Saudi rose 1.9 percent and Mobily added 0.5 percent.
Saudi Basic Industries Corp. (SABIC) reported a 46 percent rise in third-quarter profit last month, beating forecasts.
Saudi petrochemical stocks were mixed, but the sector index is up 9 percent since Oct. 16.
Dubai's benchmark fell 2.2 percent to 1,742 points, its biggest drop for five months.
The Kuwaiti index rose 0.7 percent to 7,129 points.
The Qatari index slipped 0.05 percent to 7,766 points.
The Oman index fell 1 percent to 6,478 points.
