May 20 (Bloomberg) -- Dar Al Arkan Real Estate Development Co. declined the most in more than 10 months after the board of the Saudi developer recommended not to distribute a dividend for last year.
The shares fell 6.3 percent, the most since July 11, to 8.95 riyals at the close in Riyadh, making it the biggest decliner on the benchmark Tadawul All Share Index. About 110 million Dar Al Arkan shares traded, or 5.7 times the three-month daily average. The stock had gained 14 percent in the previous two trading days. The Tadawul rose 0.1 percent.
“Retail investors will not like” the lack of a dividend, said Tariq Qaqish, head of asset management at Dubai-based Al Mal Capital PSC. Given the gains in the previous two days “we should expect profit taking.”
Dar Al Arkan also said today it plans to sell dollar-denominated Islamic bonds to fund projects and the issue would be the first of a series over the next 12 months. First-quarter profit at the biggest publicly traded Saudi property company by assets declined 19 percent, missing analyst estimates, it said last month.
The shares have gained 8.5 percent this year compared with a 7.4 percent advance in the Tadawul. Seven analysts have a buy rating on the stock, while six recommend investors hold the shares, according to data compiled by Bloomberg.
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