Emaar Properties, which has the highest weightage on Dubai index, witnessed a sell-off with hefty volumes on Tuesday after the company announced a flat dividend. The broader Dubai gauge also fell.

Emaar Properties closed 3.79 per cent lower at Dh7.36, its sharpest fall since late June, after hitting a low of Dh7.1. Traded volume rose to the highest in more than six months of average to be at Dh82 million. The stock contributed to a fifth of the total traded volumes of Dh407 million.

“For any serious investor, Emaar would be a bellwether of a stock. The fact it was sold off with good volumes is a bit of a concern for me,” Farid Samji, group head of asset management at Daman Investments told Gulf News.

The negative reaction came after the company announced a flat dividend of 15 per cent for 2016, despite reporting a 28 per cent rise in net profit last year. The company’s chairman Mohammad Alabbar said on Monday that he was hoping for a better year after a tough 2016.

“It appears that the guidance provided by Emaar on the outlook has been perceived as negative and cautionary in nature. The fact that the stock is still some 28 per cent higher than its 52-week low, it was time to book profits on the stock. This was probably one of the reasons that sparked the a sell-off today on decent volumes,” Samji said.

Shares of Emaar Properties have gained 26 per cent in the past one year, outperforming the Dubai index which has risen 8 per cent. On Tuesday, the Dubai index fell 1.53 per cent at 3,502.36.