Dubai: Aldar Properties PJSC, the largest developer in Abu Dhabi, rose as much as 5 per cent in trading yesterday after an HSBC Holdings Plc research report described the company as a "shelter for investors".
Aldar snapped a five-day decline, rising to Dh4.3, valuing the company at Dh11.1 billion.
Sorouh Real Estate Co, Abu Dhabi's second-largest developer, gained as much as 5.6 per cent before closing 0.8 per cent down at Dh2.66 yesterday.
The Abu Dhabi Securities Exchange General Index dropped 1.5 per cent.
Abu Dhabi, which owns 90 per cent of the oil wealth in the country, has the cash liquidity to support its banks and real estate companies if needed, according to the e-mailed HSBC report yesterday.
The Abu Dhabi Investment Authority is the world's largest sovereign wealth fund with assets of between $250 billion (Dh918.5 billion) and $850 billion, according to the International Monetary Fund.
'Shelter for investors'
"We continue to believe that Abu Dhabi, particularly Aldar, is likely to offer the best shelter for investors, while providing good appreciation potential," the HSBC report said.
"We prefer Aldar because of its strong ties with the Abu Dhabi government, which we believe is likely to provide support in case of need."
The UAE Central Bank has already held talks with the Finance Ministry on possible measures to support real estate lending amid the global financial crisis.
"In the current environment, Aldar's strong liquidity and its relationship with the Abu Dhabi government are being highlighted as good reasons to accumulate the stock at the current moment," Ali Khan, head of cash equity trading at Dubai's Arqaam Capital Ltd, said in response to e-mailed questions.
