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09 December 2023

Dubai's Damac plunges after offering no cash dividend

GFH was the biggest loser on the Dubai bourse on Monday. (Reuters)

By Reuters & Staff

Shares in Dubai property developer Damac fell close to their daily 10 per cent limit to Dh2.79 (down 9.7 per cent) after the real estate company announced its results sans a cash dividend.

The Dubai-based master developer nevertheless proposed a share dividend of Dh0.10 per share, representing 500 million bonus shares (on a capital of 5 billion shares).

According to Reuters, analysts had forecast a dividend of Dh0.14.

Shares in the Damac rallied on listing on the Dubai Financial Market in mid-January after the company initially floated global depositary receipts in London in late 2013.

Damac shares went up to Dh3.38 but then crashed to a low of Dh1.78 as an oil price plunged hurt sentiment and pushed local markets lower. However, before this morning’s announcement of results, shares were up a massive 73 per cent in Fenrualry, closing yesterday’s session at Dh3.090.

The DFM index was up 1.37 per cent at about 10.45am.