Dubai: Emaar Properties shares extended losses for another session on Tuesday, to hit their lowest level in a year, as selling continued on the wider Dubai gauge.
Emaar Properties fell to a low of Dh5.58, before closing 1.05 per cent lower at Dh5.64.
The Dubai Market General Index closed at 3,100.39, down 0.21 per cent.
“A few months of unclear communication between the Emaar management and shareholders after the Emaar Development IPO led to weakness in Emaar shares, and the AGM can be a good discussion forum for a dialogue and lifting of uncertainty for improving communication channels,” Sanyalaksna Manibhandu, head of research, First Abu Dhabi Bank Securities said.
Emaar Properties said last month that its board had approved the submission of a proposal to the annual general meeting to distribute Dh1 billion, the remaining tranche of the special dividend promised by the company after the initial public offering of Emaar Development.
The company had earlier distributed Dh3 billion in January as its first tranche of special dividend.
However, no details on the annual dividend were mentioned in the statement posted on the Dubai Financial Market’s website last month.
The annual general meeting of the company will be held on April 22.
In other stocks, DP World closed 2.14 per cent lower at $21.90. Gulf Finance House closed 0.75 per cent lower at Dh 1.33. Ithmaar closed 1.72 per cent lower at Dh 0.40.
“What we have is the lack of confidence in the market. The global flight to quality and less appettite for risk is making the market cautious. We are looking to the first quarter results, if local companies come with a positive outlook, there will the recovery, but if they are guarded, the lack of appetite for risk will remain,” Manibhandu said.
The companies will start publishing their first quarter results from next week.
Traded value also continued to be on the lower side.
Traded value fell to Dh123 million compared to Dh250 million a few earlier. This compares with a high of more than a Dh1 billion registered last year.
“There were two IPOs and investors thought there will be a special dividend which is not as much as expected. In 2018 there will be two rights from the banks (Dubai Islamic Bank and Emirates NBD) that will further drain liquidity,” Manibhandu said.
The Abu Dhabi Securities Exchange general index closed 0.08 per cent higher to 4,585.21. Waha Capital fell 7 per cent as the stock went ex-dividend. Abu Dhabi Commercial Bank closed 1.36 per cent lower at Dh6.55.
Elsewhere in the Gulf, Saudi Arabia Tadawul index closed 0.21 per cent higher to 7,799.77. The Qatar exchange index closed flat at 8,721.75.