Emaar fuels recovery on Dubai bourse
EMAAR PROPERTIES WAS SECOND MOST ACTIVELY TRADED AFTER DRAKE AND SCULL
Traders resorted to continued buying in Emaar Properties to take advantage of the special dividend, triggering continued recovery on Dubai index.
The Dubai Financial Market General index closed 0.57 per cent higher at 3,065.96. Emaar Properties, which has the highest weightage of 16 per cent on the index, closed 2.66 per cent higher at Dh5.79. Emaar Properties was the top gainer among stocks, and the second most actively traded on the bourse after Drake and Scull.
Emaar Properties will pay the second tranche of special dividend of 14 per cent of the share capital, or 14 fils per share from the proceeds of the IPO of Emaar Development. The company had earlier paid a special dividend of Dh3 billion. However, Emaar Properties and Damac, which will go ex-dividend from today, is expected to negatively impact local equities.
Damac Properties closed 1.84 per cent higher at Dh2.77. DSI closed 9.63 per cent lower at Dh1.22.
ICE Brent Crude –0.82% Elsewhere in the Gulf, Saudi Arabia’s Tadawul index was 0.20 per cent lower at 8,208.87. Saudi Basic Industries closed 2.94 per cent lower at 114.60 Saudi riyals. Alinma Bank closed 0.77 per cent higher at 20.86 riyals. The Qatar exchange index closed 0.31 per cent lower at 9,111.97. The Muscat MSM 30 index closed 0.11 per cent lower at 4,729.05.
“There is some volatility after the bounce last week. End of the day, it is going to be specific stock movement in Dubai. The biggest theme will be Saudi Arabia,” Sanyalaksna Manibhandu, head of research, First Abu Dhabi Bank Securities said.
“Going ahead, the results will have to be really, really good for people to see sustainable buying. The UAE lacks any real catalysts,” Manibhandu added.
The Abu Dhabi Securities Exchange general index closed at 4,669.52, down 0.34 per cent. Dana Gas, which witnessed continued recovery, closed 4.21 per cent higher at Dh0.99. RAK Bank closed 2 per cent higher at Dh4.49.
ICE WTI Crude –0.93%