Business | Markets
Nervous investors await Emaar meeting
UAE markets experienced a mixed performance yesterday, with Dubai's benchmark index falling by 1.23 per cent to 4,089.30, while Abu Dhabi's general index advanced by 0.33 per cent to 3,048.62.
- By Ahmed A. Elewa, Staff Reporter
- Published: 00:00 March 12, 2007
Abu Dhabi: UAE markets experienced a mixed performance yesterday, with Dubai's benchmark index falling by 1.23 per cent to 4,089.30, while Abu Dhabi's general index advanced by 0.33 per cent to 3,048.62.
In Dubai, investors awaited anxiously for the outcome of Emaar Properties' general assembly later in the day.
"Investors are avoiding any decisions at this stage, as speculation is high for the outcome of the general assembly's meeting," said Mohammad Ali Yasin, general manager of Emirates Securities, who outlined three strategies predicted by investors regarding expectations for Emaar's dividend this year.
"There are those who are pessimistic, who decided to sell off their Emaar holdings, and are aiming at re-entering at a lower price. Others are cautiously optimistic, expecting the dividend to be close to last year's, and who are holding the stock.
Finally, there are some optimistic investors seeking to suggest higher dividends during the meeting, which is not likely to happen," he said.
Emaar fell by 0.78 per cent to Dh12.70, while Dubai Financial Market's shares plummeted by 3.95 per cent to Dh2.19, with many analysts attributing the trend to profit booking.
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Just one out of 20 listed companies was in the black, as all the leading shares ended the session in negative territory, including the National Bank of Dubai and Emirates Bank which plunged by 2.26 and 4.76 per cent to Dh10.80 and Dh13.00 respectively.In Abu Dhabi, there were strong gains for Abu Dhabi Islamic Bank (Adib) which advanced by almost 6 per cent to Dh55.00.
"Adib seems to attract speculators, as it maintains high volatility, while the market in general seem to be secured by the stability of the leading shares, as most speculative activities seem to focus on the shares with small values such as Sorouh, Aldar, Taqa, and the likes,"added Yasin.
After Emaar's dividend is announced, investors will be looking for the first quarter's results, that seem to be the upcoming catalyst for trading in the coming period.
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