Dubai: Dubai index recovered from its intra-day losses on Sunday on the back of a catch-up play in Emaar Properties.
The Dubai Financial Market General index closed 0.19 per cent higher to 3,048.46. Emaar Properties, which was the second-most actively traded stock closed up 1.26 per cent to Dh 5.64, after gaining 6 per cent in the last few sessions.
“The Emaar pack is catching a bid. Emaar Malls reported a mixed set of results – topline grew nicely over 20 per cent, whereas earnings growth was relatively muted – still I would say better than what some investors were fearing,” Vrajesh Bhandari, portfolio manager at Al Mal Capital told Gulf News.
Emaar Properties has been an under-performer since the start of the year with 18 per cent loss in value compared to a 7 per cent fall in Dubai index mainly due to mixed sentiment over dividend payout.
“For Emaar, investors would keenly watch the presales number and any management commentary on outlook for the year – to better assess how the company is navigating the current slowdown in the property market. Valuations on a sum-of-the-parts basis look attractive,” Bhandari said.
Shuaa shares jumped 5.71 per cent to end at Dh1.11. Islamic Arab Insurance closed 7 per cent higher to Dh0.426.
Other stocks
In other stocks, Gulf Finance House closed steady at Dh 1.26.
The Abu Dhabi Securities Exchange general index closed 0.25 per cent lower to 4,685.44. Etisalat closed 0.29 per cent lower to Dh17.3.
The Tadawul index in Saudi Arabia closed 0.19 per cent lower to 8,232.70. Analaysts expect the index to consolidate at 8,200 levels and going forward investors will eye results from Al Rajihi and National Commercial Bank.
Saudi Basic Industries (SABIC) closed 0.75 per cent lower to 117.80 riyals after the company posted a 5.4 percent rise in net profit for the first quarter ended March 31.
“SABIC’s first quarter numbers are solid – given the strong pricing environment for petrochemicals. However, as evident from the stock price reaction today, we believe the market valuation has run up too fast, slightly ahead of fundamentals,” Bhandari said.