Dubai: Traders failed to buy Emaar Properties ahead of its ex-dividend despite attractive yields, weighing on the Dubai index.
Monday was the last day for Emaar Properties’ investors to claim the special dividend of Dh0.42, which comes to about 5.79 per cent yields. This compares with a potential dividend of more than 7 per cent for Emaar Development that will be paid on an annualised basis.
“Limited buying ahead of ex-dividend date possibly indicates that investors are not very happy with announced dividends. Traders are resorting the relative value play between Emaar Properties and other listed entities. Some are reshuffling their portfolio in favour of Emaar Malls and Emaar Development because of clarity on business model against limited clarity on capital plans,” said an analyst who did not wish to be named.
Emaar Properties closed 0.41 per cent lower at Dh7.25 and was the most active stock in trade, contributing to 32 per cent of the total traded value of Dh372 million. Emaar Development closed 1.06 per cent higher at Dh5.71. Emaar Malls closed at Dh2.33, up 0.43 per cent.
Drake and Scull International (DSI) closed more than 2 per cent lower at Dh2.14 while Dubai Islamic Bank closed more than a per cent weaker at Dh6.46.
The Abu Dhabi Securities Exchange (ADX) General Index closed 0.15 per cent lower at 4,629.24.
Adnoc Distribution closed 0.73 per cent lower at Dh2.71. First Abu Dhabi Bank Securities (FABS) had a buy on Adnoc Distribution at Dh2.62 in anticipation of a bullish breakout.
“Further buying may extend the rally towards the next higher targets of Dh2.90/3.05 in the medium term,” said Shiv Prakash, senior research analyst at FABS.
Etisalat closed at Dh17.85, up 0.05 per cent.
Elsewhere in the Gulf region, Saudi Arabia’s Tadawul index was 0.33 per cent lower at 7,488.48.
The Qatar Exchange index closed 0.72 per cent higher at 9,211.02 while the Muscat MSM 30 index rose 0.21 per cent to close at 4,989.09.
The Kuwait index closed 0.07 per cent higher at 6,625.12.