Aldar Properties PJSC (ALDAR) and Sorouh Real Estate Co. (SOROUH) fell the most in more than a week on speculation gains driven by merger talks between the Abu Dhabi real-estate developers were overdone.
Aldar, the biggest property developer in the United Arab Emirates capital, fell 3.5 percent, its biggest drop since March 7, at the 2:00 p.m. close in Abu Dhabi. Sorouh lost 4.1 percent, also the largest decline in more than a week. The drops trimmed gains in Aldar this week to 24 percent and in Sorouh to 23 percent. The benchmark ADX General Index (ADSMI) fell 0.2 percent to 2,625.85, paring its climb this week to 2.5 percent.
Aldar and Sorouh, which fell 60 percent and 48 percent, respectively, in 2011, said in a joint statement on March 11 they set up a team to study a possible merger with the “blessing” of the Abu Dhabi government. The two companies are are involved in the emirate’s drive to transform itself into a tourism and business hub as it strives to diversify its economy away from relying on oil.
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