Dubai - Arabstoday
Dubai’s shares advanced for the first time in six days on speculation Emaar Properties may agree to boost its 2011 dividend at a meeting with shareholders tomorrow and before the real-estate developer reports earnings.
Emaar, developer of the world’s tallest building which is expected to post a 37 per cent gain in quarterly profit, headed for the biggest advance in almost three weeks. Emirates NBD, Dubai’s biggest lender, rose 2.9 per cent. The DFM General Index climbed 0.9 per cent, set for the first gain since April 12, to 1,652.68 at 11:35 am in the emirate. The Bloomberg GCC 200 Index added 0.2 per cent and Saudi Arabia’s Tadawul All Share Index climbed 1.4 per cent yesterday.
Emaar, the company with the heaviest weighting on Dubai’s index, is scheduled to meet with shareholders tomorrow to discuss its proposal to pay a cash dividend of 10 fils for 2011, unchanged from 2010. Last year, Emaar abandoned a plan not to pay a dividend after a three-hour meeting between shareholders and executives.
“Investors are waiting for Emaar’s annual general meeting tomorrow,” said Nabil Farhat, a partner at Abu Dhabi-based Al
Fajer Securities. “Some are hoping they will influence the board to boost the dividend to 15 fils rather than the 10 fils recommended last month.”
Emaar didn’t distribute dividends in 2009 and 2008, according to data compiled by Bloomberg. Its profit plunged 89 percent and 54 per cent those years, respectively, as the company that derives more than three-quarters of revenue.
The developer may report this week an increase in first- quarter profit to Dhs577 million ($157 million), according to the median estimate of four analysts on Bloomberg. The shares rose 2.8 percent to Dhs3.29, poised for the biggest advance since April 4.
Shares in the Gulf also rose after oil for May delivery increased 0.8 per cent to $103.05 on the New York Mercantile Exchange on April 20. Gulf Arab oil exporters, including Saudi Arabia and the UAE, supply about a fifth of the world’s oil. The Stoxx Europe 600 Index advanced 1.7 per cent last week after the International Monetary Fund raised its forecasts for global economic growth and US corporate earnings beat estimates. Emirates NBD rose the most since March 28 to Dhs2.88.
Qatar’s QE Index gained 0.6 per cent and Kuwait’s Stock Exchange Price Index added 0.3 per cent. Abu Dhabi’s ADX General Index fell 0.2 per cent and Bahrain’s BB All Share Index slipped 0.3 percent.