Emaar Properties PJSC dropped the most in eight months after the developer of the world’s tallest skyscraper reported a 28 percent decline in fourth-quarter profit as expenses increased.
The shares retreated 3.7 percent, the biggest decrease since June 3, to 4.69 dirhams at the close in Dubai on more than two times the three-month daily average trading volume. Emaar, which makes up more than 20 percent of the benchmark DFM General Index, led declines on the gauge, which fell 2.1 percent.
Quarterly net income dropped to 512 million dirhams ($139 million), missing the 538 million-dirham average estimate of five analysts compiled by Bloomberg. Revenue climbed 20 percent to 2.68 billion dirhams, while cost of sales jumped to 1.5 billion dirhams from 970 million dirhams, the company said.
The share price decline “is mostly driven by retail investors after the fourth-quarter numbers,” said Tariq Qaqish, deputy head of asset management at Dubai-based Al Mal Capital PSC. “But Emaar is looking more and more promising and investors should be looking at future projects and future earnings.”
Emaar shares rallied 30 percent last month as the developer started a new luxury hotel project in central Dubai, set to comprise 280 apartments. It sold all units made available at a first offering, the company said Jan. 27. Emaar’s 2013 profit may rise 9 percent, according to the average estimate of 11 analysts on Bloomberg.
The share’s 14-day relative strength index fell to 71 today from 86. A reading above 70 indicates to some analysts that a security is poised to drop. Twelve analysts recommend investors buy Emaar shares, while three say hold, according to data compiled by Bloomberg.