Dubai: The Emaar stock came under pressure as soon as DFM opened, trading 1.86 per cent lower at Dh5.80 as investors reacted to the ‘in-principle’ decision to sell the fashion portal Namshi to noon for $325 million plus. Volume of trading is quite heavy, with 1.18 million shares traded within the first 15 minutes of the market opening.
By 10.30, the Emaar stock had pared down the early losses, and is now 1.01 per cent per cent down to Dh5.85.
Emaar Properties’ stock was suspended on Friday pending a decision by the Board on whether to retain Namshi or sell. Earlier today, DFM confirmed that the stock is good to resume.
“Given the nature of the decision, an immediate and sharp shareholder reaction was to be expected,” said a market trader. “And on Monday, it happened. It could be that shareholders were hoping for a bigger sticker price for Namshi.”
Emaar shareholders had reacted the same way when the Dubai mega-developer announced it would spending Dh7.5 billion to acquire the whole of Dubai Creek Harbour project from Dubai Holding. It was then that the company announced the Namshi plans.
