Real estate brings relief in Dubai
SECTOR STOCKS HAD BEEN BATTERED DUE TO WEAK OUTLOOK
Better than expected results from Emaar Properties and other units lifted sentiment on the Dubai index yesterday, which ended more than 1.65 per cent higher.
Emaar Properties closed 6.49 per cent higher at Dh4.10, rebounding from its lowest level in 52 weeks at Dh3.85. Emaar Properties was the most active stock in trade, contributing 27 per cent of the total traded value. About 19 million shares changed hands during the day, out of which 6 million shares were traded in auction.
“In Dubai, there could be a slight rebound during today’s session now that Emaar Malls has come out with its earnings, posting a solid 7 per cent growth in net profit YoY with plans for expansions to be ready within the first half of 2019,” Issam Kassabieh, Senior Financial Analyst, Menacorp said in a morning note.
Emaar Development closed 9 per cent higher at Dh3.69. Emaar Malls closed 6 per cent higher at Dh1.59. Dubai Investment closed 4.55 per cent higher at Dh1.15. In other property stocks, Arabtec closed 0.49 per cent higher at Dh2.05.
Aldar Properties closed 11.49 per cent higher at Dh1.65. About 56 million shares changed hands in Aldar Properties, the highest volume since April 2015.
“Aldar’s decline is expected but not enough to justify the current stock price especially with a dividend yield close to 9 per cent,” Kassabieh said.
Closing figures
The Dubai Financial Market general index closed 1.65 per cent higher at 2,533.61. The Abu Dhabi Securities Exchange general index closed 0.19 per cent higher at 5,036.41. Dana Gas closed 2.84 per cent lower at Dh0.82. Abu Dhabi Commercial Bank ended 0.21 per cent higher at Dh9.37.
Saudi Arabia’s Tadawul index was 0.43 per cent lower at 8,580.51. The MSCI Tadawul 30 Index was at 1,269.20, down 0.46 per cent. Saudi Basic Industries Corp was 0.40 per cent lower at 123.80 riyals. Al Rajhi Bank was 0.59 per cent lower at 101 riyals. The energy index which was up 0.42 per cent kept the downside limited.