April 10 (Bloomberg) -- Emaar Properties PJSC dropped for the first time in three days after shareholders approved the board’s dividend recommendation, disappointing some investors who had anticipated a higher payout.
The shares fell 1.8 percent to 5.35 dirhams at the close in Dubai, trimming this year’s gain to 43 percent. About 16 million shares were traded, or 83 percent of the three-month daily average, according to data compiled by Bloomberg. Emaar has the highest weighting on Dubai’s benchmark index, which retreated 0.4 percent.
Shareholders approved the board’s recommendation of 10 fils a share yesterday after the market closed. Emaar may report a 4 percent increase in net income this year after an 18 percent surge in 2012, according to the median estimate of 12 analysts on Bloomberg.
“This pull-back is expected as investors expected bigger dividend distribution,” said Mohammed Ali Yasin, managing director of NBAD Securities in Abu Dhabi. “Also some investors are concerned about the lack of clarity on where profits this year will come from.”
Ten analysts have a buy rating on the stock, five say hold and one recommends selling, according to data compiled by Bloomberg.
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