Abu Dhabi's Aldar Properties ended at a one-week high on Sunday on hopes of government help with its debt, lifting the emirate's index, while other regional bourses were mixed in lacklustre trading. Aldar, Abu Dhabi's largest developer by market value, rose 3.1 percent as investors hoped a government support package for the firm to be announced this week.
In November, Aldar said it was in the final stages of talks with the government over its cash needs, with a deal expected by the end of 2010. The firm has 14 billion dirhams ($3.8 billion) of debt maturing in 2011, according to investment bank EFG-Hermes.
"Investors in Abu Dhabi are waiting for news about the government support for Aldar and something is expected very soon," said Mohamed Khaled, Prime Emirates relationship manager. "This has pushed the stock up. There are rumours that Aldar may pay investors not through bonds but through some other way such as real estate sale."
The index gained 0.3 percent to 2,722 points, snapping a four-session losing streak. Dubai-based developer Arabtec climbed 2.6 percent helping the index rise for a second session in a row. The bourse closed 0.1 percent higher at 1,641 points. In Saudi Arabia, heavyweight Saudi Basic Industries Corp reached its highest value in seven months, buoyed by rising oil prices. Saudi investors are expecting an end-of-the-year rally with the index crossing the 6,500 points mark.
"We are finally above the 6,500 mark and are stabilising above it," said Saleh al-Onazi, vice president of principal investment at Swicorp in Riyadh. "Petrochemical stocks are doing well as oil prices are still high. Cement and the telecom sector is also doing well and so I believe that we will see a rally towards the end of the year."
The index gained 0.2 percent to 6,577 points, its highest close in over seven months.
Egypt's main index dipped, with property developer Talaat Moustafa Group reversing earlier gains to drop 0.3 percent. On Saturday, an Egyptian court delayed a hearing on whether the government must auction state land that was sold directly to TMG for its flagship Madinaty project.
But traders said the developer may gain in the coming days after President Hosni Mubarak said in a speech on Sunday that he looked forward to parliament passing a new law to protect state land from abuses.
"This (Mubarak's speech) will certainly reflect positively on TMG stock in the coming days," said Hisham Metwalli, a broker at Arab Finance Brokerage. Arafa Holding, Egypt's biggest garment exporter, jumped 3.1 percent after it reported that its net profit more than doubled in the nine months from February to October. The index slipped 0.3 percent.
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