Profit-booking dents Dubai index as Emaar disclosure delay continues
By Ahmed A. Elewa, Staff Reporter Abu Dhabi: The UAE markets closed on a mixed note yesterday, with Dubai’s benchmark index falling by 0.34 per cent to 4,156.38 and Abu Dhabi’s general index advancing by 0.68 per cent to 3,347.27. In Dubai, the marginal decline was attributed to profit booking, while some analysts blame the fading investor’s interest in Emaar Properties due to the delay in revealing the details related to the company’s partnership with Dubai Holding. Alternatives “The low volumes indicate the lack of interest due to the lack of transparency, accordingly many investors switched to alternative blue chips,” commented Rami Sidani, senior associate partner in Shuaa Capital, who forecasts that Emaar will trade in a tight range of price movement up to the time when it announces the details of the deal. ——————————————————————————– ——————————————————————————– Dubai Islamic Bank continued its strong performance, though it was unchanged by the close at Dh9.03, yet with initial estimates of ten times over-subscription for its real estate arm, Deyaar, initial public offering of Dh3.17 billion, many analysts are expecting the rally to continue. “This outcome means that more than Dh30 billion was directed to the new issue indicating strong interest in IPOs on the one hand, and the abundance of liquidity on the other,” Sidani explained. The official outcome of the IPO is still to be announced. In Abu Dhabi, the market continued its uninterrupted gains, maintaining the strong rally on the real estate and energy shares, in addition to the excellent performance of the banking sector. Interest “Foreign interest is still fuelling the market rally, while etisalat’s intention to open up for foreign investment can further boost the flow of foreign funds to the market,” Sidani said. etisalat, which is expected to be relieved from 40 to 60 per cent of the royalty fees it pays to the government soon, did not change to close at Dh18.05, while many analysts observe the current price level below the fair value, and hence forecast further growth. “Many companies are still undervalued in Abu Dhabi, and the growing demand is a healthy indication that the market is heading towards strong gains,” Sidani said.