Emaar Properties lifted Dubai’s equity index yesterday as shareholders awaited an upcoming board meeting that will discuss dividends.
The Dubai Financial Market General Index rose 0.5 per cent to 4,986.28 points, with Emaar shares jumping 3.1 per cent to Dh11.50.
The directors will hold a meeting to discuss, “among other matters, the proposal for dividend distribution to the shareholders amounting to Dh9 billion”, Emaar said in a regulatory disclosure on the DFM website. The company will inform the “results of the meeting once approved”, Emaar added.
Emaar hived off its retail business in an initial public offering last month that raised US$1.58bn.
Emaar has previously said that part of the cash raised for Emaar Malls Group (EMG) would be distributed to the parent company's shareholders.
“This is the most important catalyst for investors,” said Tariq Qaqish, the head of asset management at Al Mal Capital, a Dubai-based investment bank.
Last month stocks had been trading in a tight range as investors closed out positions in existing shares to subscribe to the EMG offering. The market corrected itself before the Eid holidays to reflect emerging and international benchmarks.
“You can see the market was sold out from Thursday,” Mr Qaqish. “So the recovery in markets abroad during the Eid break has to also be reflected here,” he added.
halsayegh@thenational.ae
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