Emaar drags Dubai index lower on pending dividend

COMPANIES SAY BOARD APPROVES SUBMITTING PROPOSAL AT AGM FOR DIVIDEND TRANCHE

Emaar Properties fell along with Dubai index yesterday after the company failed to give details of the annual dividend.

In a statement, Emaar Properties said its board had approved submitting a proposal to the annual general meeting to distribute Dh1 billion, the remaining tranche of the special dividend promised by the company post of the initial public offering of Emaar Development.

The company had earlier distributed Dh3 billion in January, as its first tranche of the special dividend.

However, no details of the annual dividend were mentioned in the statement posted on the Dubai Financial Market’s website.

“People expected the annual dividend in today’s statement from Emaar, but they got details only on the second tranche of the special dividend, so the stock sold off,” said Vrajesh Bhandari, portfolio manager with Al Mal Capital.

The Dubai Financial Market General index closed 1.78 per cent lower to 3,149.53. Emaar Properties closed 2.97 per cent lower to Dh5.89. Emaar Development closed nearly 3 per cent weaker at Dh5.30.

In other stocks, Gulf Finance

House closed 2.8 per cent lower at Dh1.39.

“Emaar lacks new catalyst for fresh money and there has been a fund rotation from the UAE to the other regional markets such as Saudi and Egypt chasing short-term returns,” Bhandari said.

Dubai stocks have been trading attractive valuations, but investors have been preferring to invest in other regional markets because of iminnent catalysts.

Egypt has been trimming interest rates, which have historically boosted stock markets, and Saudi Arabia will potentially get a place in the FTSE Russel emerging market index later in the month.

The Abu Dhabi Securities Exchange general index closed 0.24 per cent lower at 4,577.84. Dana Gas closed 0.09 per cent higher at Dh0.84. Aldar Properties closed 0.02 per cent higher at Dh2.24. Abu Dhabi Commercial Bank closed 0.44 per cent lower at Dh6.63.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 1.02 per cent higher at 7,840.94. The Nomu index closed flat at 2,979.09. The Qatar exchange index closed 0.54 per cent lower at 8,825.70. The Muscat MSM 30 index closed 0.10 per cent higher at 4,800.93.

Emaar’s special dividend distributed in January