The board recommended a 1 riyal cash dividend per share for 2012 after profit declined 17 percent to 1.17 billion riyals ($321 million). Revenue from leasing rose 18 percent to 741 million riyals.
Trading in Barwa shares is “dominated by domestic investors, predominantly retail, who react more to dividends than earnings,” said Julian Bruce, Dubai-based head of institutional trading at EFG-Hermes Holding SAE. A “dividend of 1 riyal was disappointing versus expectations of 1.5 riyals hence the sell-off.”
Profit for 2013 may climb 13 percent to 1.32 billion riyals, according to Aljazira Capital Co. Barwa’s 14-day relative strength index declined to 22 today. A reading below 30 indicates for some analysts that the security is poised to gain.
To contact the reporter on this story: Alaa Shahine in Dubai at firstname.lastname@example.org
To contact the editor responsible for this story: Claudia Maedler at email@example.com