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27 May 2024

Emaar hits fresh 51-month high

By Reuters

Shares in Emaar Properties rally to a fresh 51-month as retail demand surges, lifting Dubai's measure on Sunday.

Emaar jumped 4.6 per cent to its highest close since November 2008. It broke through a technical resistance near Dh5.15 and the next target is Dh5.6, analysts say.

"The move today is driven mainly by talk on the dividend - people are generally expecting higher dividends than last year," says Ali Adou, portfolio manager at The National Investor.

The firm's board is expected to propose dividends on Monday after a board meeting. It paid out Dh0.1 per share last year.

"If the dividend is maintained at 10 fils, then the yield for Emaar will be at the bottom of UAE universe at 1.9 per cent," says Anastasios Dalgiannakis, institutional trading manager at Mubasher. "If the rally is indeed driven by dividend expectations, we should get a meaningful increase."

Demand for Emaar's property development has risen sharply in recent months as prices in Dubai recover.

Emaar on Saturday, announced the launch of its second The Address branded tower in Downtown Dubai this year. The project - Address Residence Sky View - is a new 50-storey hotel, residence and serviced apartment twin-tower complex in Downtown Dubai.

Others say new property launches have boosted retail investor confidence in the stock, mirroring the recovery in real estate appetite.

Dubai's index rose 1.2 per cent to 1,946 points, its highest close since November 2009.

Neighbouring Abu Dhabi benchmark climbs 0.2 per cent to end at 3,028 points, a fresh 39-month high.

Elsewhere, Qatar's measure falls 0.5 per cent to 8,693 points, while Kuwait's index ticks up 0.07 per cent to 6,409 points.