Eshraq Properties rose yesterday as investors bought shares in the Abu Dhabi-listed developer ahead of the release of its third-quarter results.
Eshraq shares advanced 3.3 per cent to 31 fils on light volume.
The company's board of directors is to meet on Sunday and quarterly results are to be disclosed before trading begins on Monday, Eshraq said in a filing to the Abu Dhabi Securities Exchange (ADX).
Last month, Eshraq informed the market that it had purchased the Nuran Marina Hotel in Dubai from Emaar Properties for US$34 million.
"It's a good sign of diversification," said Wadah Al Taha, the chief investment officer at Al Zarooni Group, an investment company in Dubai. "If they move towards hospitality, it's the right time because the margin in that sector is much higher than the contracts."
Eshraq went public last year, with shares priced at Dh1.
Many investors seized on the option of buying the shares for a 25 per cent down payment, plus a fee of 0.02 fils a share. The balance of the price was to be paid off within two years, at the direction of the company's board of directors, it said at the time.
"It was a very smart move," said Mr Al Taha. "But by next year, they will have to call another part of the capital which hasn't yet been called."
The ADX General Index gained 0.4 per cent to 2,674.90 points yesterday. The Dubai Financial Market General Index added 0.1 per cent to 1,615.59.
Trading was light in markets across the region.
[ halsayegh@thenational.ae ]
