Markets Wrap: Emaar Properties rose the most in more than six months as investors drove the share price closer to the developer's book value.
Investors drive Emaar price closer to book value
Emaar Properties rose the most in more than six months as investors drove the share price closer to the developer's book value.
Emaar's shares jumped 5.7 per cent, the highest since July.
"The market is finally recognising the value of Emaar's assets," said Fadi Al Said, the head of equities at ING Investment Management in Dubai. "A big chunk of its business, which has been frozen in the last couple of years, is now starting to come back. We have seen a lot of successful launches … It's about time."
The shares closed at Dh5.01 in Dubai. Emaar's accounting book value is estimated at about Dh6, said Mr Al Said.
HSBC increased its target price on Emaar's shares to Dh6 yesterday, from Dh4.8 previously, amid strength in the Dubai property market and off-plan sales.
"The market was surprised in HSBC's target price," said Sebastien Henin, a portfolio manager at The National Investor in Abu Dhabi. "I think this was the reason behind the sharp movement."
The Dubai Financial Market General Index jumped 2.1 per cent to close at 1,899.51 points.
The Abu Dhabi Securities Exchange General Index fell 0.5 per cent to 2,893.71. Gulf Medical, was up 14.5 per cent to Dh2.28, while Fujairah Building Industries fell 9.9 per cent to Dh1.81.