Dubai:
Emaar Properties shares surged on Monday after reports that the company was planning to sell its non-core assets. The Abu Dhabi index hit its highest level in 18 months.
Emaar Properties closed 2.77 per cent higher to Dh5.20. About 10.6 million shares were traded on Emaar, the highest since June.
“What helped us today in recovery was Emaar, which led the way and helped the share close at Dh5.20. The announcement that they are looking to sell non-strategic assets has helped the markets,” Mohammad Ali Yasin, chief executive officer at First Abu Dhabi Bank Securities said.
The Dubai Financial Market general index closed 0.67 per cent higher to 2,919.46. The Abu Dhabi Securities Exchange general index closed at the day’s high of 4,747.09, the level last seen in February 2017. The index closed 1.08 per cent.
The index was boosted by positive performance in Etisalat and First Abu Dhabi Bank. FAB closed 0.25 per cent higher to Dh12.85, while Etisalat closed at Dh17.4, up 0.3 per cent.
Yasin expect more details on the possible transaction that may take place from Emaar Properties, which is reportedly in talks to sell $1.4 billion (Dh5.14 billion) of assets like hotels, clinics and schools.
“We need more details like what kind of profits they could be recording. We need more clarity on why are they doing this sale: do they want better cash flow or they want to pay additional dividend to Emaar Development shareholders that may be coming in October,” Yasin said.
Emaar Properties, which has the highest weightage on the index, has been an underperformer compared to the Dubai index after the decision to give lower than expected dividends to shareholders of Emaar Development.
Emaar Properties has lost 29 per cent in value in the past one year compared to 13 per cent fall on the Dubai index.
Elsewhere in the region, Saudi Arabia’s Tadawul index closed 1.02 per cent higher to 8,490.75.
