Dubai:

Robust trading activity in Drake and Scull (DSI) revived speculative activity in other small stocks, continuing its trend from last week on the Dubai Financial Market (DFM), providing opportunity for yield-hungry traders in an otherwise dull market.

Drake and Scull closed 4.68 per cent higher at Dh1.79, after hitting a high of Dh1.84, the level last seen in April. Traded value was at Dh165 million, its peak since 2009.

“Since completion of recapitalisation on October 2, DSI has rallied by over 19 per cent, which we believe reflects some market participants’ belief that outstanding receivables issue will be addressed shortly, post strategic shareholder coming on board. We await more visibility on this aspect, and till then, do not see much value in the stock,” said Ankit Gupta, vice-president at Shuaa.

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 stands very bullish in DSI and only a close under Dh1.70 will result in a reversal of rising momentum,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities in a note. NBADS had a technical buy on the stock at Dh1.60 for a target of Dh1.90/2.

DSI contributed to Dh165 million of traded value, contributing to 32 per cent of the total of Dh505 million.

The Dubai Financial Market General index closed 0.56 per cent higher at 3,611.31. Brisk trading activity was seen other small counters in Dubai and Abu Dhabi.

Dana Gas, Eshraq, Manazel, Methaq surged in Abu Dhabi, while Gulf Finance House, Shuaa, Union Properties, Deyaar witnessed a rally in Dubai.

“Dana Gas is hinting at a bullish breakout over the sideways range resistance at Dh0.76, may target Dh0.80/0.85 in the next few sessions,” Prakash said.

Dual listed Sudani stocks surged after reports of removal of sanctions by the United States.

Sudatel, AL SALAM Sudan both jumped and hit the upper circuit. Sudatel closed 15 per cent higher at Dh0.69, while AL SALAM Sudan ended 14.89 per cent higher at Dh2.16. The Abu Dhabi Securities general index closed 0.35 per cent higher at 4,429.79. Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.35 per cent lower 7,233.58. The Qatar exchange index closed 0.24 per cent lower at 8,112.59.

“Looking ahead, we remain selective within the Dubai market and focus remains building position in the heavyweights, Emaar and DIB, which together accounts for 40 per cent of the index weight,” Gupta said.