Aldar plunges to new five-year low, UAE markets dip

Aldar Properties plunges to a new five-year low and slumping real estate prices are likely to further dampen sentiment for the indebted developer. Aldar, which has made a loss for four straight quarters, drops 4.2 per cent to Dh1.82, its lowest finish since at least April 2005. The state-linked firm's shares have plunged since it unveiled a restructuring plan dilutive to shareholders. [

Aldar's management has indicated it will repay about Dh12 billion ($3.27 billion) in debt by 2013, says Jad Abbas, EFG-Hermes real estate analyst. A Reuters poll last week forecast oversupply would cause Abu Dhabi and Dubai house prices to make further double-digit declines, with the latter's prices already about 60 percent below a 2008 peak. Abu Dhabi's index drops 0.3 per cent to 2,667 points, its lowest close since October 5. Dubai's benchmark falls 0.4 per cent to 1,624 points as property-related stocks slide. Emaar Properties drops 1.5 per cent, contractor Drake 7 Scull loses 1.8 per cent and builder Arabtec alls 2.2 per cent.