The developer's shares tumble ahead of an earnings announcement on Thursday, after reports of project delays in France and Indonesia.
Emaar's stock drags down DFM
Shares in Emaar Properties fell ahead of an earnings announcement due tomorrow, after reports that the company had delayed the opening of hotels in France and Indonesia.
Address Hotels in the two countries had been put on hold, the online magazine Hotelier Middle East reported yesterday, citing a company representative.
Shares in the developer of the Burj Khalifa tower in Dubai fell 2 per cent to Dh2.81, dragging the Dubai Financial Market (DFM) General Index down after a rally in early trading.
Emaar's drop reversed earlier gains on the wider index, which fell 0.1 per cent to 1,474.06. Meanwhile, the Abu Dhabi Securities Exchange (ADX) General Index fell 0.2 per cent to 2,468.67.
Shares have retreated from a seven-month high reached this week for Emaar, which is expected to announce quarterly earnings tomorrow. Investors are betting on a strong quarter for the developer and operator of the Dubai Mall, after strong earnings from rival mall operator Majid Al Futtaim Holding, said Yazan Abdeen, a fund manager at ING Investment Management.
"There's a lot of bullishness on that announcement," he said. "Emaar should do well in the fourth quarter. If it doesn't do well, you'll see the stock crashing."
Analysts expect the bank to report profits for the fourth quarter of Dh436 million, a 59.4 per cent increase on the same period a year earlier.
Union National Bank's shares were the biggest mover in Abu Dhabi, falling 6.6 per cent to Dh2.96 each after the bank reported its worst quarterly earnings since 2008.
Etisalat, Aldar Properties and Dana Gas also fell on the capital's stock market. Volumes swelled on the DFM, with the number of Arabtec shares traded accounting for nearly half the exchange's total.
Oil prices soared, with Brent crude futures rising US$1.49 to $117.60 per barrel.
Elsewhere in the region Qatar and Kuwait fell, while Oman rose. Bahrain and Saudi Arabia's markets were flat.