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Emaar shrugs off Tuesday's blues bouncing back 5.67% to Dh9.51
Emaar Properties, long considered a proxy for the Dubai Financial Market, bounced back yesterday, surging 5.67 per cent to close at Dh9.51. It had reached a three-year low when it closed at Dh9 on Tuesday.
- By Gaurav Ghose, Financial Features Editor
- Published: 23:39 August 27, 2008
Dubai: Emaar Properties, long considered a proxy for the Dubai Financial Market, bounced back yesterday, surging 5.67 per cent to close at Dh9.51. It had reached a three-year low when it closed at Dh9 on Tuesday.
"With Emaar touching a low of Dh8.91, it was very close to the support level of Dh8.89, where good buying was witnessed and is therefore nearing the resistance of Dh9.70 in the near term," said Shiv Prakash, technical analyst, Mac Sharaf Securities. "A close above Dh9.70 can take it higher to Dh10.25."
Fundamentally, the stock is relatively cheap when compared to other stocks, with P/E levels varying between 8 and 8.5 times. But given the not so encouraging results of the company in the past two quarters - at least in the eyes of the retail investors - the performance of the stock has been subdued.
However, Emaar on most days is in the top five of the most liquid stocks on the market. Yesterday, it led the list of the stocks with the highest turnover with a total of Dh256.33 million.
"Because of the liquidity of Emaar, it makes it more volatile," said Sharif Abdul Khalek, manager, institutional accounts, Beltone Financial Securities.
"Recent speculation of a real estate sector slowdown and the negative news of allegations of corruption against officials of property developers haven't helped. All real estate stocks have got hit."
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