Emaar Properties rallied more than 2 per cent, the highest since mid-September, amid agressive buying after its unit, whose shares listed on the Dubai Financial Market, recovered from its intra-day low. Emaar Properties rose 2.63 per cent higher, the biggest percentage gain since September 18. Emaar Properties closed at Dh 7.80, recovering from an intra-day low of Dh7.46. The positive sentiment helped Dubai index, which closed 1 per cent higher at 3,444.93.
“Buying stepped in from the lower support zone in Emaar, and confirmed a bullish reversal on charts,” Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities said in a note. If buying momentum sustains in Emaar Properties, it may trigger a revival in Dubai index, analysts say.
Emaar Development, which got listed on the bourse, recovered 5 per cent from its intra-day low to a high of Dh5.93. Emaar Development, however, closed 4.31 per cent lower at Dh 5.77 compared to the listing price of Dh6.03.
“The significant share price pressure in pre-market auction suggests that the allocation to some market participants might have been higher-than-their anticipation, further underscored by actual 93.8 per cent allocation versus planned 90 per cent allocation to the qualified investors in the IPO offering,” Ankit Gupta, vice president with Shuaa Capital said.
Thus, some institutions might have been very keen in reducing their overall exposure to Emaar Development, and Dubai real estate sector, Gupta said.
“We will wait and see how the situation pans out. The timing is not in their favour amid geo-political issues in the region, and that triggered overall weakness in the UAE market, which impacted the appetite for the IPO,” Tariq Qaqish, Managing Director - Asset Management at MENACorp said.
Earlier in the week, Emaar Properties pointed out that it received strong response from institutional and retail investors, with 40 per cent of allocation made to international investors.
In other stocks, Gulf Finance House closed 6.06 per cent higher at Dh 1.75, while Dubai Investments closed 2 per cent stronger at Dh2.54.
“The GFH shares formed a reversal patren on the weekly chart, and broke over the long term trend line barrier. We may see further upside to Dh1.95,” Prakash said. NBADS had a techical buy at Dh1.53 on November 14. NBADS expect a recovery in Aramaex to Dh5.50, which is 20 per cent higher from current levels of Dh4.64. Aramex closed at Dh4.64, up 0.87 per cent.
The Abu Dhabi Securities Exchange general index closed 0.85 per cent lower at 4,273.71. Etisalat closed lower at Dh16.1, while First Abu Dhabi Bank closed lower at Dh10.1.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.51 per cent higher at 6,812.99. The Qatar exchange index closed 0.38 per cent higher at 7,798.39. The Muscat MSM 30 index closed flat at 5,078.03.