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Emaar Could Trade at Dh5 by Year-end: Analysts Say |
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September 15, 2009
DUBAI — Emaar Properties PJSC, the United Arab
Emirates’ largest developer, could rise to 5 dirhams a share if
regional stock markets continue to climb steadily and money supply
maintains at healthy levels, analysts said.
“The
only thing that might hamper its progress from reaching 5 dirhams is if
the credit situation tightens and money supply gets scarce,” Vyas
Jayabhanu, head of Al Dhafra Financial Brokerage LLC in Abu Dhabi said
in an interview. “But I don’t see this happening.”
Emaar
shares gained 4.3 per cent to Dh3.66 at 11:12 am in Dubai, the highest
level since June 18. The shares, which have climbed 61 per cent this
year, remain well below their 2008 high of 15.70. The Dubai Financial
Market General Index has gained 17 per cent this year. Emaar is the
most weighted stock on the Dubai bourse at 22 percent.
Dubai’s
real-estate industry was hurt more than others by the global financial
crisis. Home prices have tumbled by about 50 percent from their peak
and may drop another 20 per cent this year, Deutsche Bank AG said on
June 10. The market’s collapse followed a construction boom that
created thousands of homes just as demand began
to evaporate.
Dubai
Holding said in June it was in talks to merge three property units,
Dubai Properties, Sama Dubai LLC and Tatweer, with Emaar as it seeks to
weather current market conditions through consolidation.
Source: Khaleej Times
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