Virus Concerns Hit Shares in Builder of World’s Tallest Tower - Bloomberg:
Dubai’s Emaar group felt the downside of being a proxy for investments in the local exchange as traders rushed to price in the impact of the coronavirus on the city’s real estate, hospitality and retail industries.
Shares of Emaar Properties PJSC, developer of the 828-meter (2,716-foot) high Burj Khalifa, slumped 10% this week after more than 230 cases of the virus were confirmed throughout the Middle East. Subsidiaries Emaar Malls and Emaar Development lost 4.7% and 8.4%, respectively.
While analysts and investors assess the full effect of the outbreak on business in the region, there are already signs of the potential damage to come. Emirates, the world’s largest long-haul carrier, suspended flights earlier this month to Guangzhou and Shanghai, while continuing those to Beijing. The United Arab Emirates this week halted all flights to Iran, the epicenter of cases in the region.
The upheaval could hardly come at a worse moment for the listed Emaar companies, which combine to represent about a fifth of Dubai’s main equities index. Emaar Properties has been battered along with its developer peers in the past two years by a slump in the local real estate industry amid a slowing economy. The holding company posted a 4.3% drop in revenue for 2019 as it eked out a slight gain in net income.
Dubai’s Emaar group felt the downside of being a proxy for investments in the local exchange as traders rushed to price in the impact of the coronavirus on the city’s real estate, hospitality and retail industries.
Shares of Emaar Properties PJSC, developer of the 828-meter (2,716-foot) high Burj Khalifa, slumped 10% this week after more than 230 cases of the virus were confirmed throughout the Middle East. Subsidiaries Emaar Malls and Emaar Development lost 4.7% and 8.4%, respectively.
While analysts and investors assess the full effect of the outbreak on business in the region, there are already signs of the potential damage to come. Emirates, the world’s largest long-haul carrier, suspended flights earlier this month to Guangzhou and Shanghai, while continuing those to Beijing. The United Arab Emirates this week halted all flights to Iran, the epicenter of cases in the region.
The upheaval could hardly come at a worse moment for the listed Emaar companies, which combine to represent about a fifth of Dubai’s main equities index. Emaar Properties has been battered along with its developer peers in the past two years by a slump in the local real estate industry amid a slowing economy. The holding company posted a 4.3% drop in revenue for 2019 as it eked out a slight gain in net income.
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