Equity analysts in the United Arab Emirates are puzzling over some unusual trading patterns in the Abu Dhabi stock market this week – and over a curious response to the affair from ADX, the Abu Dhabi Securities Exchange.
Hours before an announcement that two of the emirate’s biggest real estate developers would merge into a $15bn property titan, the shares of Aldar Properties and Sorouh rose in tandem by 7.9 per cent to Dh1.22 (33 cents) each.
The fact that the stock price increase came before the announcement was enough to set alarm bells ringing. However, the next day the shares of the two companies again rose in lockstep, by the same amount: 9.8 per cent, to Dh1.34.
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