Emirates NBD Drops on Bets Quarterly Jump Overdone: Dubai Mover
Emirates NBD PJSC declined to the lowest level in almost three weeks on investor bets gains this quarter, the best on record, were overdone.
The shares of the biggest bank in the United Arab Emirates tumbled 4 percent to 3.82 dirhams, the lowest since March 10, at the close in Dubai. They were the biggest decliners on the benchmark DFM General Index, (EMIRATES) which gained 0.5 percent.
The drop trimmed Emirates NBD’s surge this year to 34 percent, compared with an advance of 14 percent for Dubai’s gauge. The shares traded at as high as 8 times estimated earnings this week, the most expensive in at least two years, according to data compiled by Bloomberg. They closed at 7.5 times today, still above a ratio of 7 for Dubai Islamic Bank PJSC (DIB), the sheikdom’s biggest Shariah-compliant lender.
“We expect to see profit taking,” said Tariq Qaqish, deputy head of asset management at Dubai-based Al Mal Capital PSC. “The stock has outperformed the Dubai index.”
Emirates NBD tumbled 5.7 percent in the past five days, the worst weekly performance since April.
Three analysts recommend investors buy the shares, while four have a hold rating and one says sell, according to data compiled by Bloomberg.
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