Dubai outperforms Gulf stock markets as Emaar jumps

Dubai’s main index rallied on Tuesday driven by a sharp rise in Emaar Properties shares on market speculation that Emaar’s hotels division could be preparing for an IPO.

The Dubai Financial Market General Index rose 0.9 percent to close at 3,496 points. Emaar Properties jumped 3.3 percent to AED 7.47, a day after its shareholders confirmed a 15 percent cash dividend for 2016 at the annual general meeting (AGM).

Emaar chairman Mohammed Alabbar reportedly told the investors that they could look forward to a “special dividend” in 2017.

Emaar declined to comment when contacted by Argaam.

“(It is) the same way they did in the past when Emaar Malls IPO was announced,” a market analyst told Argaam, asking not to be identified.

“This time rumor is that there might be IPO of Emaar’s Hotel division soon and later on a special dividend will be given,” he added.

Emaar’s net profit for full year 2016 grew 28 percent to AED 5.2 billion. The developer, however, kept its dividend for 2016 unchanged from previous year at 15 percent.

Meanwhile, in Abu Dhabi the benchmark index slumped 1.1 percent to 4,494 points. Telecom giant Etisalat sank nearly 2 percent to AED 17.45. The stock was trading ex-dividend.

First Abu Dhabi Bank (ticker: NBAD) was down 1.8 percent at AED 10.85.

Elsewhere in the region, Qatar’s QE Index closed slightly lower at 10,336 points; Kuwait’s price index was down 0.5 percent at 6,885 points.

Saudi Arabia’s Tadawul All Share Index was last trading down 0.3 percent.

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