Amlak shares show no sign of slowing

Amlak Finance’s shares are too expensive, analysts say. But that has not deterred retail investors from buying them.

The Dubai-based Sharia-compliant mortgage lender, whose stock began trading anew last week after a six-and-a-half-year suspension, has risen the maximum allowed for five straight days, soaring 74 per cent since restarting. It closed at Dh1.77 on Monday.

EFG-Hermes UAE said the company’s fair value was less than half its starting price of Dh1.02.

“Amlak is a hot stock to buy this week,” said Firas Khabour, a Dubai-based private investor. The stock is attractive because of the government’s support for the company and a possible property boom from Dubai Expo 2020, he said. He plans to buy the stock this week.

Amlak has gained more than Dh1.1 billion in value since last week. Investors traded about 174 million shares on Monday, almost half of the bourse’s total volume.

“It seems that retail investors are quite excited about the stock,” said Yong Wei Lee, the head of Middle East and North Africa equities at Emirates NBD Asset Management in Dubai. “We haven’t heard of any major announcement from the company to explain the movement.”

Retail investors from the GCC dominated trades last week, data from National Bank of Abu Dhabi’s brokerage unit showed.

Separately, the Qatari bourse closed in the red for a fourth successive day after a senior Fifa official said Doha could be stripped of World Cup hosting rights if evidence of bribery in the bidding process emerges.

The Doha index closed 0.6 per cent lower at 11,903.08.

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