Emaar: Address fire has no ‘material impact’ on firm

This content was originally posted in 7DAYS UAE website at: Emaar: Address fire has no ‘material impact’ on firm Emaar Properties said the fire-hit Address Downtown is fully insured as it sought to reassure investors about any potential risks to the business. The firm issued a statement yesterday to the Dubai Financial Market, reassuring its shareholders. The statement came several hours after stocks dipped by 4.4 per cent when the markets opened on the first day since the fire on New Year’s Eve. The statement read: “The fire has been contained and the cause is being investigated by the company and the relevant authorities. The building and risk of fire are covered by insurance so there should be no material impact on the company as a result of this incident.” RELATED: Address fire coverage Bloomberg reported that Emaar shares led a general dip in the Dubai stock market. However, the statement released by Emaar, reassured investors and pushed up the shares. The company closed on Dhs5.60, with shares down just 1.6 per cent. An independent Abu Dhabi financial broker, Mitesh Sunder, told 7DAYS: “As an investor, if there has been no official comment, I’m going to need more reassurance from Emaar on the protection of their revenue. Emaar’s statement gives the market a lot of reassurance.” Samer al Jaouni, head of institutional business at Menacorp, also told Bloomberg: “The statement helped halt some panic selling we saw at the beginning of the session, but investors still have questions. “The company needs to clarify the amount and percentage of cash flow that the hotel was contributing to Emaar’s hotel portfolio.” mahak@7days.ae Read the original story at: Emaar: Address fire has no ‘material impact’ on firm