March 10 (Bloomberg) -- Emaar Properties PJSC rose to the highest level in more than four years on investor bets a property recovery in the emirate will boost sales at the developer of the world’s tallest skyscraper.
The shares rallied 3 percent to 5.56 dirhams, the highest close since October 2008, in Dubai. The stock was the biggest gainer and second-most traded on the benchmark DFM General Index, which rose 1.5 percent, according to data compiled by Bloomberg.
“The earnings outlook for the company is strong given the emirate’s property recovery,” said Waleed Al Khateeb, Dubai-based senior finance manager at Daman Securities LLC.
Emaar’s 48 percent surge this year makes it the best-performing stock on Dubai’s stock index, which has advanced 18 percent. The company is poised to report a nine percent increase in 2013 earnings after an advance of 18 percent last year, according to the mean estimate of 11 analysts compiled by Bloomberg.
Gross domestic product in the second-biggest sheikhdom of the United Arab Emirates may grow more than 4 percent this year, Sami Al Qamzi, director general of Dubai Department of Economic Development, said in an e-mailed answer to questions. Figures for the first six months of 2012 point to growth of 4.1 percent for the full year, he said.
“Hotel occupancy has already hit record high levels and the number of travelers and tourists has been higher than expected during the first two months of the year,” Al Qamzi said. The department also expects “the construction and real estate sector, which is already showing positive signs, to bounce back.”
Emaar’s 14-day relative strength index rose to 73 today. A reading above 70 indicates to some analysts that a security is poised to drop.
Eleven analysts recommend investors buy Emaar shares, while two say hold them and one says sell, according to data compiled by Bloomberg. HSBC Holdings Plc said last month it expects Emaar’s shares to rise to 6 dirhams.
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