Dubai index declines as blue chip Emaar slumps 5%

Dubai main index tumbled more than 1 percent in early session on Tuesday as heavyweight Emaar Properties slumped over 5 percent as the stock traded ex-dividend.

The Dubai Financial Market General Index was down 1.1 percent at 3,461 points, within the first half hour. Emaar fell 5.4 percent to AED 6.86.

The developer had announced AED 4 billion ($1.09 billion) of special dividend to shareholders from the proceeds of the recent Emaar Development initial public offering (IPO).

An initial dividend of AED 3 billion, representing 42 fils per share, was planned for January, followed by additional AED 1 billion after shareholders’ approval in April.

Among other stocks, Union Properties led up 2.3 percent to AED 1.01 amid heavy activity. The real estate firm has sold its entire 50 percent stake in Dubai-based cooling service provider, Emicool, to Dubai Investments for AED 500 million ($137 million).

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com