Aldar extends drop as bond sale seen dilutive

Aldar Properties plunges to a new five-month low, extending declines since saying it plans to take $2.9 billion in impairments and issue a $760 million convertible bond as part of the indebted developer's restructuring. Aldar drops 5.7 per cent, slumping to its lowest level since August 15. Abu Dhabi's government will also pay $4.5bn for various Aldar assets. Many analysts have welcomed the restructuring plan, but minority investors remain unconvinced.

"Aldar emerges as a leaner company with an improved capital structure, allowing the market to focus on fundamentals," AlembicHC wrote in a research note, cutting its target price for Aldar to Dh2.9 from Dh3.8 and giving the stock an overweight rating. Abu Dhabi's index falls 0.5 per cent to a three-week low of 2,701 points in early trading.