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Emaar Lifts Dubai Stocks Up 3.4 Per Cent
DUBAI - Aggressive buying in Emaar Properties lifted the main Dubai stocks index on Sunday by 3.4 per cent, the most in three weeks, and a day before the official opening of the property giant's flagship project and the world's tallest structure - Burj Dubai.
- PUBLISHED: Tue 5 Jan 2010, 12:14 AM UPDATED: Mon 6 Apr 2015, 10:23 AM
Investors speculated that the opening of the world’s tallest tower on Monday will boost earnings at Emaar Properties. The property developer breached a strong resistance level at Dh4.04 on high volume and rose by 7.8 per cent to Dh4.16, the highest close since November 25.
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“Its not surprising, but a positive sign that Burj Dubai is coming online. We will see positive results in the first and second quarters following handing over of properties,” Deepak Tolani, Vice President Equity Research, Al Mal Capital, told Khaleej Times.
Arabtec Holding and Drake & Scull International, both contractors on Burj Dubai, also advanced. Arabtec increased by 6.3 per cent to Dh2.85 and Drake & Scull added 3.3 per cent to Dh0.93.
Dubai Financial Market’s General Index advanced 3.4 per cent, the most since December 14, to 1,865.59 on the first trading day of the year. Abu Dhabi’s ADX General Index jumped 1.05 per cent to 2,772.34 points.
The company switched to “completed contract” accounting, which allows it to recognise profit when units are delivered, last year. Emaar previously booked profit based on the proportion of work that had been completed. Burj Dubai will welcome its first residents from February, Emaar said on December 31.