But Aldar is significant in that it is the first big Abu Dhabi company to get itself into trouble (from my knowledge, anyway). We're used to this kind of thing with Dubai companies but Aldar's situation shows that problems exist further afield.
One analyst report I read claimed that Aldar wasn't the subject of a bailout but was just raising funds, like any other company might do. So, Aldar's a bit like Facebook then. Just raising a bit of capital
Well, bailout or not, Aldar's stock price is teetering on the edge. As the chart below shows the current stock price is sitting at the 2 dihrams level.
The two previous times Aldar's share price has visited this level (late 2008 and mid 2010) the stock has rallied. And what about this time? Under the circumstances you would think it's probably going to be a case of third time unlucky.
What Aldar does could be important to the wider Dubai and Abu Dhabi markets. Aldar is a heavily traded stock and if breaks below the 2 dihram level that could impact sentiment for other stocks.
Time to keep an eye on Aldar, even if don't own it right now.
No comments:
Post a Comment