Emaar Shares Fall 3.3%, Most In A Month
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Emaar Shares Fall 3.3%, Most In A Month

Emaar Shares Fall 3.3%, Most In A Month

Dubai’s benchmark index declined 1.6 per cent, paring the surge for the year to 93 per cent.

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Emaar Properties PJSC retreated the most in more than a month as investors bet that gains in the builder of the world’s tallest skyscraper were overdone.

The Dubai-based developer declined 3.3 per cent, its steepest drop since November 11, to Dhs7.14 at the close in the emirate.

It was the biggest loser by index points on the DFM General Index. The shares, which are up 90 per cent this year, snapped a seven-day rally.

Property companies in the emirate are benefiting from an economic recovery and a rebound in construction as Dubai prepares for the World Expo in 2020.

Dubai’s benchmark index declined 1.6 per cent, paring the surge for the year to 93 per cent.

Emaar’s 14-day relative-strength index fell to 72 from 86 yesterday. A reading above 70 indicates to some analysts a security is overbought and poised for a decline.

“It was on a tear for the past few days, so this is finally the pullback we are seeing,” said Saad al Chalabi, senior institutional trader at Al Ramz Securities in Abu Dhabi. “A very healthy pullback, much needed and overdue.”

Emaar’s board will meet December 17 to consider converting a bond into shares.


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