Markets Wrap: Arabtec Holding surged almost 6 per cent yesterday as retail investors bought up shares in the region's biggest contractor.
Arabtec surges as retail investors buy up shares
Arabtec Holding surged almost 6 per cent yesterday as retail investors bought up shares in the region's biggest contractor that have lagged behind the steady rise of blue chips in recent days.
"It was a technical jump," said Sebastien Henin, a portfolio manager at The National Investor, an investment company in Abu Dhabi. "It's interesting to note that volumes have increased a lot when the share touched a technical level of Dh2.85, triggering a new rally."
Arabtec's stock jumped 5.7 per cent yesterday, closing at Dh2.96 a share.
About 38 million shares were traded, compared with 6.5 million for the three-month average.
The Dubai contractor, whose major shareholder is the Abu Dhabi government-controlled fund Aabar Investments, is expected to benefit from a Dh330 billion public package to build new homes, schools and infrastructure.
The Dubai Financial Market General Index closed 0.7 per cent higher at 1,887.59 points.
Property stocks led the gains in Abu Dhabi. Eshraq Properties was the top-traded stock. It rose 6.6 per cent to 48 fils. About 65 million shares changed hands. Aldar Properties advanced 1.4 per cent to Dh1.42. RAK Properties surged 4.7 per cent to 44 fils.
"It's a continuation of the positive momentum in the market," said Tariq Qaqish, the deputy head of asset management at Al Mal Capital in Dubai.
"It has showed a strong recovery in the macro picture and investors are trying to find entry levels at each weakness. There's definitely a strong flow into the equity markets."
The Abu Dhabi Securities Exchange ticked 1 per cent higher at 2,881.78.