Dubai
Drake and Scull (DSI) continued with its gaining streak on Tuesday, and analysts said the trend is still bullish.
The Dubai-based construction major closed 2.11 per cent higher at Dh1.94, after gaining more than 6 per cent in the previous session. The stock has gained 406 per cent since October 2, when the capital was re-structured.
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.
“The trend remains extremely bullish headed towards the next higher targets at Dh2.02/2.22 near term,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities.
Traders who bought from the lower recommended levels of Dh1.59 may look to hold and trail the stops higher to Dh1.83, Prakash said in a note.
The Dubai Financial Market General index closed 0.06 per cent lower at 3,608.82.
In other stocks, Gulf Navigation closed 13 per cent higher at Dh1.50. Gulf Finance House closed 1 per cent lower at Dh1.62. The Abu Dhabi Securities Exchange general index closed 0.48 per cent higher at 4,472.04.
Liquidity
Traded value stood at Dh600 million in Dubai, up from Dh100-200 million last week.
“We do see more liquidity coming back to the market which is positive as momentum is mounting. We believe increase in liquidity will lead more investors who were sitting on the sideline to reinvest in the market,” Tariq Qaqish, Managing Director — Asset Management at MENACorp said.
“While we are approaching third quarters results, we see the macro pictures remain solid which would have a direct impact on capital markets. Most of the negatives news are discounted and future outlook is becoming clearer to predict after a long period of consolidation,” Qaqish said.
Companies are slated to publish their third quarter results from next week.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 1.23 per cent lower at 7,041.28.
