Emaar Properties PJSC retreated the most in a month amid speculation this year’s rally in the developer of the world’s tallest skyscraper in Dubai may be overdone.
The shares dropped 1.7 percent, the most since July 23, to 3.39 dirhams at the close in Dubai, trimming this year’s gain to 32 percent. The benchmark DFM General Index climbed 16 percent this year. It fell 0.9 percent today.
The drop in Emaar’s shares today is “just a correction,” said Chahir Hosni, equity sales manager at EFG-Hermes Holding SAE in Dubai. “The stock has performed very well, seeing a rally from about 3 dirhams to about 3.5 dirhams. Investors may be thinking the rally will stop here.”
Emaar said on July 29 second-quarter profit more than doubled, beating analysts’ estimates, as a one-time impairment charge was not repeated and the company cut costs. Net income for 2012 may decline 19 percent to 327 million dirhams, according to National Bank of Kuwait estimates.