Emaar Properties rallies from 14-month lows

A wave of buying in beaten down blue-chip stock Emaar Properties boosted the Dubai market yesterday, while most of the region traded quietly in modest volumes.

Dubai’s index firmed by 0.5 per cent, but remains the Gulf’s worst-performing index this year with a decline of 2.5 per cent, partly because of a sustained slump in the emirate’s real estate market.

However, the bourse was lifted yesterday as Emaar, which had been trading near 14-month lows, surged by 3.2 per cent to Dh6.22 in its heaviest volume this year. It is still down nearly 5 per cent since the start of 2018.

The increase in volume suggested that some funds were buying back stock on valuation grounds. It had reached a trailing price-earnings ratio of about 7.6 times, according to

The increase in volume of Emaar shares moved yesterday suggests the market is beginning to find the company and its stock attractive at present prices

Thomson Reuters data. That is not expensive by the standards of several Asian markets, where property stocks are at multiples of between nine to 12 times earnings.

Of 12 analysts rating Emaar Properties, 10 have a “buy” or “strong buy” rating and none have a “sell”, Thomson Reuters data shows. Their median target for the stock is Dh9.45.

The Saudi Arabia index was flat in its lowest volumes this year. Najran Cement fell 3.8 per cent after it swung to an annual net loss of 21.9 million riyals from a profit of 125.7m Saudi riyals.

But Saudi Investment Bank added 1.7 per cent after reporting a 16 per cent rise in fourth-quarter net profit to 352m riyals. NCB Capital had forecast 301m riyals and EFG Hermes 302m riyals.

Egypt’s blue-chip index edged up 0.2 per cent. QNB Alahly surged 2.4 per cent as 13.6 million shares changed hands, the biggest volume since 2005.

The bank’s parent, Qatar National Bank, said this week that it would sell a 2.125 per cent stake in QNB Alahly to comply with Cairo listing rules on free floats. The bank has slightly more than 890 million shares outstanding.

Meanwhile, emerging equities soared almost 1 per cent yesterday while South Africa’s rand held steady as investors awaited Finance Minister Malusi Gigaba’s first budget under new President Cyril Ramaphosa.

MSCI’s benchmark emerging stocks index was lifted by strong gains in some Asian markets.