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Drake and Scull climbs more as activity continues in small stocks

DSI nears highest level since April as volumes peak in a flat Dubai market

Gulf News

Dubai:

Drake and Scull (DSI) rose on Monday, extending gains for another session, triggering further activity in select stocks.

Drake and Scull closed at Dh1.90, up 6.15 per cent, at the highest level in the day.

“The positive appetite on DSI still ruling in markets. DSI is looking strong because is restructuring has been beneficial for the company,” said Marwan Shurrab, head of high net worth and retail equity brokerage, Al Ramz, adding

“this has resulted in strong retail participation on the DFM in small stocks”.

The share price of the loss-making company was re-adjusted at Dh1.49 on October 2 from the earlier Dh0.375 after the company underwent capital re-structuring and diluted its equity base and got fresh capital injection of Dh500 million from Tabarak Investments.

Manazel, Dana Gas, Rak Properties, Arabtec, GGICO also rose in a flat Dubai and Abu Dhabi market. Manazel closed 3.70 per cent higher at Dh0.56.

“Today’s price action in Manazel hints at a bullish breakout over the sideways range resistance at Dh0.56, may target Dh0.62/0.72 in the next few sessions,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities.

Dana Gas closed 2.67 per cent higher at Dh0.77. Rak Properties closed 1.41 per cent higher at Dh0.72. Gulf General Investment Company closed 6.46 per cent higher at Dh0.412.

Gulf Finance House witnessed profit-taking. Damac, Shuaa, Emaar Malls also fell in trade. Gulf Finance House closed 3.51 per cent lower at Dh1.65. Emaar Malls fell 2 per cent to close at Dh2.28.

The Dubai Financial Market General Index closed 0.01 per cent lower at 3,610.82, while the Abu Dhabi Securities Exchange general index closed 0.47 per cent higher at 4,450.65.

“We are going now into October and end of the year, our markets are playing a catch up with international markets,” Shurrab said.

Going ahead, Shuaa says they will remain selective.

“Looking ahead, we remain focused remains building position in the heavyweights, Emaar and DIB, which together accounts for 40 per cent of the index weight,” said Ankit Gupta, vice-president at Shuaa Capital.

Emaar Properties plans to do a primary offering of its development unit, after it transferred more than 40 assets to the unit.

“We expect additional information on the development portfolio in due course will likely further infuse positive sentiment on the name,” Gupta said.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 1.11 per cent lower at 7,114.01. The Qatar exchange index closed 0.93 per cent higher at 8,212.86.

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