DUBAI: Gulf stocks ended mixed Thursday amid concerns. Abu Dhabi's benchmark climbed 0.3 percent 2,684 points. Dubai's measure dropped 0.6 percent to 1,609 points. Kuwait index eased 0.3 percent to 6,896 points. Qatar index fell 0.2 percent to 9,066 points. Oman index slipped 0.05 percent to 6,986 points. Bahrain's measure fell 0.2 percent to 1,423 points. Abu Dhabi's Aldar Properties fell to a 23-month low Thursday, extending losses since it unveiled a restructuring plan dilutive to shareholders and UAE markets remain weak as Aldar's precedent deters traders. Aldar, which has made losses for four straight quarters, dropped 1.5 percent to AED2, its lowest finish since Feb. 4, 2009. The developer's shares have fallen 12 percent since saying it would take $2.9 billion in impairments and issue a convertible bond to a government-owned investment vehicle. Abu Dhabi's government will also buy various assets from Aldar for $4.5 billion. "The way Aldar was resolved triggered negative sentiment in Abu Dhabi - investors didn't get the government support in the form they were hoping for Aldar," said Rami Sidani, Schroders Middle East head of investment. "This is having a negative impact on other Abu Dhabi companies and the magnitude of future government support is being questioned - Aldar has set a precedent." Emirates Telecommunications Corp (Etisalat) climbed 0.9 percent after a newspaper said the operator has a deadline of the end of January to complete due diligence on Zain. Etislat has provisionally agreed to pay $12 billion to buy a controlling stake in its Kuwait rival. Zain dropped 1.4 percent. Etisalat's rise helped Abu Dhabi's index climb 0.3 percent and ease away from Wednesday's 15-week low, but Dubai's benchmark fell , taking its losses to 1.3 percent in 2011. It dropped 9.6 percent last year to be the worst performing Gulf Arab index. "Expectations are for emerging and developed markets to move higher, which could spark some bottom fishing in lagging markets and the UAE is the most lagging market in the region," said Marwan Shurrab, Vice President and chief trader at Gulfmena Alternative Investments. Yet investors fear other companies will follow Aldar's lead. "UAE valuations are extremely attractive, but the risk of dilution is making investors cautious," Shurrab added. Property and banking stocks dominate UAE bourses and house prices appear set for further declines. Kuwait's index slumped to a four-week low. "We need more visibility on the government's development plan and see this spending trickling down into the economy this year," said Schroders' Sidani. "The Kuwait market has run ahead of itself and I expect to see it under further pressure." Last year, the government indicated it would part-finance a $104 billion spending program through local lenders, helping the bank index rise 42 percent in 2010, but few details of the plan have been forthcoming, spurring investors to lock in some of these gains.
