Dubai: Emaar Properties PJSC retreated the most in a month amid speculation this year’s rally in the developer of the world’s tallest skyscraper in Dubai may be overdone.
The shares dropped 1.7 per cent, the most since July 23, to Dh3.39 at the close in Dubai, trimming this year’s gain to 32 per cent. The benchmark DFM General Index climbed 16 per cent this year. It fell 0.9 per cent on Sunday.
The drop in Emaar’s shares is “just a correction,” Chahir Hosni, equity sales manager at EFG-Hermes Holding SAE in Dubai, said. “The stock has performed very well, seeing a rally from about Dh3 to about Dh3.5. Investors may be thinking the rally will stop here.”
Emaar said on July 29 second quarter profit more than doubled, beating analysts’ estimates, as a one-time impairment charge was not repeated and the company cut costs. Net income for 2012 may decline 19 per cent to Dh327 million, according to National Bank of Kuwait estimates.
