Feb. 14 (Bloomberg) -- Emaar Properties PJSC advanced to the highest level in more than six months amid investors’ bets the builder of the world’s tallest tower may follow Aldar Properties PJSC in paying a dividend.
The shares rallied as much as 2.7 percent to 3.02 dirhams before paring gains to 3 dirhams, the highest since Aug. 4, at 10:56 a.m. in Dubai. The benchmark DFM General Index climbed 1.8 percent. Emaar has the biggest weighting on the index.
Aldar, the developer bailed out twice by the Abu Dhabi government last year, fueled speculation on Emaar’s dividend after it recommended a 5 fils per share cash dividend for 2011, said Haissam Arabi, Dubai-based chief executive officer at Gulfmena Investments. Emaar may post a 68 percent increase in fourth-quarter profit to 460 million dirhams ($125 million) this week, according to the mean estimate of five analysts compiled by Bloomberg.
“Even a company that’s supposed to be having difficulties managed to pay dividends, so that sets the bar for all other companies, Emaar in particular,” he said. “They have to do better than that because Emaar is not a troubled company.”
Emaar last year agreed to pay the first cash dividend since 2008, bowing to the demands of shareholders during a general assembly meeting.
Aldar reported profit of 642.5 million dirhams after a year-earlier loss of 12.7 billion dirhams as it sold more land and properties to the state. The average estimate of eight analysts was for a profit of 494 million dirhams, according to data compiled by Bloomberg.
Aldar shares surged 5.1 percent to 1.04 dirhams, the highest intraday level since Nov. 17.
--Editors: Claudia Maedler, Shaji Mathew
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