Shares of Emaar Properties jumped 15% - the maximum daily limit - after raising its dividend payment to shareholders. Shares of sister company Emaar Development also climbed 15%. And it fuelled a rally across the Dubai stock market, with the main DFM index up more than 4%. That’s the biggest jump in Dubai for three years. We get reaction to that spectacular Dubai stock market rally with Amer Halawi of Al Ramz Capital
What a day on Dubai stock markets yesterday. Shares of Mr. Properties up 1515 percent, the maximum daily limit. The market as a whole up almost 4 1/2 percent. Best day in three years. Joining us on the line to give us some perspective is the head of research at Al Rams Capital. Amma Halawi Amma, good morning. Good morning, How are you? I'm good, thanks very much indeed. So this has all triggered by Mr. Properties and Mr. Development announcing plans to increase their dividend. Just remind us what changed in the statement from Mr. So basically, there is a policy for dividends in place now. It's very clearly laid out. This is the main point of views, but mostly it's giving back to the shareholders a very substantial amount of the profits of Amar going forward. So this is bold, this is beautiful, this is new, this is what the market was expecting, This is spelling confidence, and this is taking everything up. Bold and beautiful. And is it the right move from Mr. Because I've I've been going to Mr. board meetings not recently, but you know, back in the day, 1520 years ago, Mohammed Al Abbar, the chairman was always quite reticent about paying out bumper dividends. He always said, look, real estate cyclical, even in the good times, we need to keep some of that money back. And and that was typically his policy. But this does seem to be a sea change. Am I over reading this one, Emma? It is a sea change. Indeed, Amar has been conservative historically. It is now very shareholder friendly. I would say, uh, to the point of the cyclicality, you're absolutely right. Real estate cyclical, we haven't seen much cycles in the past few years apart from cycles going up and it looks like everything is in the green. You, we speak to CEO CFO's on a daily basis. Nobody's seeing any slowdown. The future seems very prosperous for the UAE. For the real estate sector as a whole, we hope it continues, but will there be a slowdown at some point eventually? Are we seeing it today? No. Is this change from Amar? Critical, substantial. Yes it is. And is it a seat change as you said? Yes, it is indeed. So shares of Mr. Properties closing yesterday at 11 dirhams. This time last year there were 7 1/2 Durham. So they've had a good run even before yesterday. They've had a good run at 11 dirhams. Is Mr. still a buy or is the good news now priced in? So that's another excellent question. We are at our fair value today and we have unless covered stock on a daily basis they crunch the numbers. We are at the fair value that we had assigned previously. Uh, we're in crunch those numbers again in light of the first quarter earnings or the year end earnings rather at some point in January or February and reassess. I think there is a number of analysts out there who have more aggressive price targets and I think what we're seeing from the real estate cycle is very, very exciting. We have sales at record levels both in volumes and prices. As I said earlier, we're not seeing any slowdown. The number of developments is increasing. There's a growing population in the UAE. There's significantly more demand for real estate across the board. So I would say that the risk to our estimates and forecasts is to the upside at this moment. And I wouldn't be surprised if something positive happened there. But right now, we are at our fair value or thereabouts. So real estate, as you say, is cyclical, I mean. Looking back at the history of Dubai real estate seems to have been kind of A7 year cycles. And that's conventional economics, isn't it? You know, we had a downturn in 2008, 2009, another one, 2014, fifteen. This cycle started in what, 20/20/21? So we're about four years, five years into it now. But here's my question. Maybe this isn't a normal cycle. If it was normal, we'd expect a downturn in a couple of years. Maybe it's a super cycle. Am I drinking too much real estate Kool-aid, Amma? So, umm, you know, this is the $1,000,000 question. Of course, if you could tell the future of, you know, we wouldn't be you and I wouldn't be here. But I want to pick on one thing that you said conventional, and there's nothing conventional about what we're seeing today in the world, not just in Dubai or the UAE. Look at the United States, look at the Super cycle across the board from commodities to cryptocurrencies to stocks, obviously traditional stocks. And so there's nothing conventional. How long is this going to continue? The, you know, I'm not going to venture and guess what we do on a daily basis is observe and take cues. And right now the queues are still positive. Finally, Amber, before we let you go, This was triggered by Mr. yesterday, but it wasn't just an Mr. story. It became bigger than that, didn't it? Other stocks rallied on the back of this. The the stock market itself, DFM was up 15%, Emirates NBD, the bank up by 9 percent. The market had its best day for three years was that. Broader rally justified in your view? Yes, absolutely. We've been pounding the table on the Dubai stock market generally for a number of years now. This is a market which has improving fundamentals, very visible growth, disclosure, transparency, which are you know, very much improved and now second to none in the UAE and in some parts of the GCC and it's trading at a single digit multiple of earnings. So everything the construct of the market. Today makes for further potential ahead. We've been saying it now we're seeing it and it's very, very exciting. And I wanna pick on something else that you said, which is that it's not just Amar. I think Amar has been a bellwether for the market for a long, long time. And what this company specifically has shown yesterday as a lot of confidence and it gave a cue to the entire market that this market is moving in the right direction. It's inexpensive and it's got more potential. And the the sweep that we saw yesterday was. Quite exciting indeed. We traded in twice the average daily volume for the market on aggregate and number of shares were limit up, especially the financials. This is a more triggered and this is very good for the market as a whole. Let's hope it continues. Appreciate your time this morning, the thoughts of Amma Halawi there Head of Research at Al Raam's Capital.
Amer Halawi insights never fail to provide a clear and expert perspective on market movements. His deep understanding of market dynamics and his ability to analyze trends make him one of the most respected research experts in the region.
Interesting view of the Dubai Financial Markets and Real Estate & the link to the wider unconventionality of Financial Markets we are experiencing right now …
Shares of Emaar Properties jumped 15% - the maximum daily limit - after raising its dividend payment to shareholders. Shares of sister company Emaar Development also climbed 15%. And it fuelled a rally across the Dubai stock market, with the main DFM index up more than 4%. That’s the biggest jump in Dubai for three years. We get reaction to that spectacular Dubai stock market rally with Amer Halawi of Al Ramz Capital
Head of Digital Media @Y5media ( Sales, Business Development, Partnership, Leadership, Development and Media buying) - "The leading largest Wi-Fi advertising network in UAE/GCC"
Emaar Properties and Emaar Development recently experienced significant stock price fluctuations. Earlier this week, Emaar Properties' shares surged by approximately 14.7%, reaching their highest level in nearly 17 years. This uptick was largely attributed to the company's announcement of plans to declare dividends at 100% of its share capital for 2024 and the coming years, totaling 8.80 billion dirhams ($2.40 billion).
However, following this sharp rise, both stocks have seen a decline. This pullback is typical after a rapid ascent, as investors may engage in profit-taking, leading to a temporary decrease in stock prices. Additionally, broader market factors, such as anticipation of the U.S. Federal Reserve's interest rate decisions, can influence investor sentiment and contribute to stock volatility.
Looking ahead, the projection for Emaar Properties and Emaar Development stocks in the next month remains cautiously optimistic. Analysts forecast a price target of 13.09 AED for Emaar Development, with estimates ranging between 11.00 AED and 17.00 AED.
Emaar Properties is expected to achieve a profit of 13 billion dirhams in 2025, driven by the completion of ongoing developments.
Investors should monitor upcoming financial results and market conditions, as these will play a crucial role in influencing stock performance. While the recent dividend announcement reflects strong corporate confidence, external economic factors and market sentiment will continue to impact stock valuations in the near term.
"This analysis reflects an opinion and not investment advice."
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Dubai: The Emaar Properties is at it again – hitting the 15% trading limit twice since DFM opened today. And continuing where it left off yesterday, with investors putting their weight behind the Dubai master-developer’s confirmation that will double the 2024 dividend payout.
As of 12:05pm today, the stock is trading at Dh12.65, up by Dh1.65. Volumes have touched a near 80 million by now, and the value of the trades an eye-popping Dh1.02 billion.
In the last 2 days, the stock has gained more than 30%, fueled by the dividend revelation of what awaits its shareholders as 2024 payout. Last year, Emaar's dividend was Dh0.50 a share (for a combined total of Dh4.4 billion). The 2024 payout will be Dh8.8 billion.
So, should investors also do some profit picking after Emaar's 30% plus spike? Some investors and analysts think that's what's coming. "These are abnormal gains driving volumes and the Emaar stock price," said an analyst. "Some profit taking should be on the cards."
In the last 12 months, the stock has propelled its way to a near 68% increase, putting it among the top performers on DFM.
Source: GULFNEWS
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Thursday 2nd May - Biggest UAE equity movers
Agility was something of a stand out performer on Thursday, with the stock soaring off the back of its debut on the Abu Dhabi exchange. Shares settled at 1.58AED, up almost 7% from the IPO price of 1.48AED.
Mashreq bank had another good day although traded volumes do appear to have been somewhat suppressed. The bid offer spread has been exaggerated by those low volumes too, although in light of recent earnings news there’s scope for upside to be seen here.
Emaar Developments was one of the worst performers on the day but the 6.72% downside can be explained away largely by the impact of the fact the stock went ex-div this morning. Shareholders received a payout of 52 fils per share, equivalent to a dividend yield of 6.12%.
Abu Dhabi Ports found itself down around 2% on the day. That appears to simply be a degree of profit taking off the back of the 12% gains posted since the end of last week.
Stocks listed in the United Arab Emirates have surpassed a total value of $1 trillion for the first time. This milestone was driven by a surge in companies linked to an Abu Dhabi royal and a series of local IPOs. Companies associated with Sheikh Tahnoon bin Zayed Al Nahyan, including International Holding Company (ADX:IHC) ., played a significant role in reaching this valuation. The UAE's stock market now ranks among the largest in emerging markets, reflecting the ambitions of Abu Dhabi's ruling family to establish the city as a global financial hub.
Tuesday's UAE equity highlights include a big gain for the Dubai index and a solid response to Emaar Development earnings news.
Tuesday saw a meaningful divergence in sentiment between benchmark equity indices in the UAE, with the Dubai Index adding just over 1% whilst the Abu Dhabi equivalent slipped back fractionally.
Emaar Development was the day’s biggest riser, adding 10.3%. Quarterly earnings news released last night provided investors with something worth cheering as revenues for the first nine months of the year were up by 69%, whilst the sales backlog had grown by 47% over the same period. With more than 10 million shares changing hands according to exchange data, traded volumes were also meaningfully higher.
Ghitha was in second place, up 8.1%. There’s no news here but the stock is extending the run of gains posted over the last week having tested multi year lows.
Agility Global was the biggest faller of the large caps and this comes after the notable move higher for the stock we noted on Monday. Last night, quarterly results and a dividend distribution were announced, with revenues up by 16% and a further US$65m being returned to shareholders. The 6.2% sell-off in the context of yesterday’s gains suggests that some investors had been expecting more.
Dubai’s Stock Market Hits a New Milestone: Lulu IPO & the $1 Trillion Triumph!
The UAE stock market has officially crossed the $1 trillion mark, cementing its position as a global financial powerhouse. The recent Lulu IPO is the latest feather in Dubai’s cap, reflecting the emirate’s meteoric rise as a hub for investment and innovation. Let’s break it down:
From Local to Global: Dubai’s Market Evolution
Over the past decade, Dubai has transformed its financial markets through strategic initiatives and a pro-investor approach. In 2022, it captured global attention by listing 10 government entities, raising a staggering $8.5 billion in IPOs. Now, with UAE-listed stocks exceeding $1 trillion in value, the region has reached a critical milestone in its economic journey.
Why Lulu IPO Matters:
• As one of the largest retail IPOs, it highlights growing investor confidence in consumer-driven sectors.
• It’s a testament to Dubai’s vision for diversifying its economy beyond oil and into retail, tech, and green industries.
Why Investors Love Dubai:
• $1 Trillion Market Cap: A benchmark that places UAE markets among the elite club of trillion-dollar economies.
• Strategic Location: Connecting East and West, Dubai is the gateway to high-growth emerging markets.
• Innovation & Sustainability: The emirate’s focus on smart cities, fintech, and green energy keeps it ahead of global trends.
The Lulu IPO, combined with the UAE’s $1 trillion market value, signals an era of unparalleled growth and opportunity. For fintech enthusiasts and global investors, Dubai isn’t just a regional hub, it’s a global force shaping the future of finance.
#LuluIPO#DubaiStockMarket#TrillionDollarMilestone#Fintech#Dubai#Mydubai
Talabat and Lulu Retail Holdings were the UAE’s biggest initial public offerings (IPOs) in 2024, raising $3.75 billion amid huge investor demand.
But the stock price of both companies have slid since listing on the Dubai and Abu Dhabi bourses respectively, threatening investor confidence in future UAE flotations involving privately run companies.
The GCC is on track to see continued strong performance in IPOs in the last quarter of 2024 despite geopolitical headwinds and challenging market conditions.
Few Prominent name upcoming IPO in coming weeks : ADHN (Catering unit of Abu Dhabi National Hotels); UAE retail giant LuLu Group ; Fourth Milling Company (MC4).
Larger IPO deal along with higher volume is expected to unfold. Region is poised to see an increase in the capital raised in the exchanges across core markets, namely the UAE, Saudi Arabia as well as Oman in the coming months.
Marketing Strategist | Telecom, Media & FinTech Expert | Digital Transformation Leader | Driving Brand Growth and Customer Engagement
1wAmer Halawi insights never fail to provide a clear and expert perspective on market movements. His deep understanding of market dynamics and his ability to analyze trends make him one of the most respected research experts in the region.