Dubai: On the third day, the Emaar stock finally turned red.
Investors are booking the sizeable gains the Dubai developer’s share price made in the last two days, rising by more than 30%. (On bot Monday and Tuesday, the stock kept hitting the upper trading limit of 15% in a session.)
Today, the stock is down by 2.37% - by Dh0.35 - near the first hour of trading, and is currently at Dh12.3.
It would have been too much of a stretch for Emaar Properties to have a third day of shooting for another 15% spike, say analysts. “At the current levels, profit taking was the obvious choice for a good number of investors,” said an analyst “That’s exactly what’s happening.”
The other listed Emaar company, Emaar Development, had seen investors cash in yesterday itself. The company, which oversees the Dubai operations, is trading 5.99% lower as of now, after passing through a 10% plus gain on Monday. The stock is now at Dh12.55.
Even then, the Emaar momentum ties into a good year for Dubai Financial Market and for the wider UAE stock market. "In a stellar year for UAE stocks, it is interesting to note that the best performers have all been related to infrastructure and real estate," said Sameer Lakhani, Managing Director of Global Capital Partners. "And two of the best performing ones being recent IPOs Parkin and Salik. As the market deepens, there is a growing realization of the valuation upside that is realizable especially when compared to the international markets."
