Investors underrate Emaar's stock
August 19, 2008
Emaar shares have suffered some of their biggest drops in year on the Dubai Financial Market, as investor confidence has retreated following shortfall across industry sectors. The real estate giant has had to be supported by 'outside intervention on a number of occasions in the last month alone, although the share value still failed to hold the Dhs10 mark, at one stage falling to lows of Dhs9.58. But as the markets begin their recovery, aided in part by the attraction of the excellent prices on offer, what is Emaar's future outlook? Investor confidence has been shaken in recent months as the markets have followed the downward trends shaking global bourses. Foreign portfolios in particular, led by the international investment houses, have taken to selling off their Gulf stocks. The strengthening of the dollar, and a fall in oil prices, has also drawn these big players back to US shares - leaving the Gulf markets to be moved mostly by regional portfolios and institutional investors. Emaar's mid-August slide caused a panic on the Dubai Financial Market. Being one of the biggest listed companies any fall has large repercussions and the hovering around the Dhs10 mark made investors jittery. External factors were forced to intervene on a number of occasions towards the end of trading to keep the shares above the mark, but they eventually fell to a low of Dhs9.58 (although outside intervention managed to raise this to Dhs9.90 by the close of the day).