Emaar Properties rose to the highest level in more than three years after a report that units made available at a new Dubai residential development sold out in one day, supporting the developer's profit outlook.
Shares of the company with the heaviest weighting on Dubai's index advanced 2.7 per cent to Dh4.60 in late trade, the highest intraday level since October 2009. Emaar boosted Dubai's benchmark DFM General Index 1.2 per cent to 1,814.41, the highest intraday level since April 2010. The stock is the fourth-best performer on the DFM General Index this month, gaining 23 per cent.
Emaar, developer of the world's tallest skyscraper, said last week it started a new luxury hotel project in Downtown Dubai amid increasing demand for high-end properties. The Address Residence Fountain Views, which will comprise 280 apartments, sold all units made available at a first offering yesterday, according to media reports.
The sales report shows that "real estate demand is resilient and strong for the Downtown Dubai area, which is positive for Emaar," said Samer Darwiche, Dubai-based analyst at Gulfmena Investments.
Home prices have climbed in some parts of Dubai, four years after one of the world's worst property crashes. Emaar's full- year net income may have advanced 16 per cent to Dh2.1 billion, according to the average estimate of 11 analysts on Bloomberg. The stock surged 46 per cent last year, outpacing the Dubai gauge's 20 per cent gain.
Twelve analysts recommend investors buy Emaar shares, while three have a hold rating on the stock, according to data compiled by Bloomberg.
* Bloomberg News