Abu Dhabi's two largest property developers lifted the emirate's bourse on Monday as investors cheered the pair's merger talks, while Egypt's Palm Hills dragged down the market after reporting lower revenue.
Aldar Properties and Sorouh Real Estate surged 9.8 percent each. The two firms said late on Sunday they were looking at a state-backed merger and a decision was expected within three months.
"Aldar holds a very high amount of debt on its balance sheet as opposed to Sorouh, which has lower leverage and a better cash flow visibility," said Ali Adou, portfolio manager at The National Investor. "So the solution might be to merge both entities and dilute the debt."
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