Dubai’s Damac May Increase Shareholding in London Project
(Bloomberg) -- Dubai’s Damac Properties PJSC said it may increase its shareholding in a project in London, hours after the shares surged to a two-year high amid comments on a potential deal.
The stock had climbed as much as 14.3% earlier on Sunday, the most in two months, after the property developer said its board will meet on Dec. 23. to consider an acquisition. Damac shares later pared gains, trading up 4% at 2:40 p.m. local time.
The company said the acquisition relates only to increasing its current shareholding in the Nine Elms project in London. “There are no other acquisition deals that have been submitted to the company’s board of directors for the purposes of consideration and discussion,” it added.
Home prices in Dubai, the Middle East’s main business and financial hub, have slumped by more than 30% since 2014. The oversupply was exacerbated by the pandemic, as demand from foreign and local investors dropped. Still, Damac’s stock has doubled over the past year, with the shares up more than 40% this month alone.
Read more: Damac Pins Hopes on Dubai Expo After Fifth Straight Loss
- Stock advanced 105% in the past 52 weeks. The Dubai stock Index lost about 8%
- The shares are up 6.3% in the past five days and rose 38% in the past 30 days
- Trading volume was 28% below the 20-day average
- The relative strength index on the stock was above 70, indicating it may be overbought
- Of shares that were traded, 48% were at the ask price and 44% were at the bid
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