x Abu Dhabi, UAEThursday 27 July 2017

Drake & Scull contract win boosts shares in Dubai

Market Wrap: Winning a 2 billion Saudi riyal contract in the Kingdom boosted interest in shares of Dubai's Drake & Scull- with video.

Shares in Drake & Scull International were the most actively traded in Dubai after the engineering and contracting company won a 2 billion Saudi riyal contract in the Kingdom.

The engineering and contracting company, which has gained 31.5 per cent in the last six months, closed 0.9 per cent higher to Dh1.09.

Emaar Properties, the largest developer in the region, was a surprising top gainer in trading despite posting lower than expected fourth quarter results.

The Dubai-based property giant said net profit had fallen 62 per cent in the fourth quarter compared with the same period in 2009, in a statement on the Dubai exchange website after trading hours on Thursday. The largest developer in the region booked Dh417 million in provisions in the same quarter, cutting into margins. Its shares gained 0.3 per cent to Dh3.26.

The resignation of Egypt's President Hosni Mubarak also buoyed investor sentiment on the UAE markets.

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Dubai's main bourse, the Dubai Financial Market (DFM) General Index rose 0.36 per cent to 1,604.19 points and the Abu Dhabi Securities Exchange (ADX) added 0.6 per cent to 2,727.71 points.

"We have seen positive movement just because of Egypt," said Alfred Fayek, head of mean equity sales at EFG Hermes, but added that the market was unlikely to see "big hikes" in the absence of significant news.

Over the weekend, the Saudi Arabian Tadawul rose to its highest point in a month but has reversed some of those gains as it slipped 0.3 per cent to 6,613.95 points.

The opening of Cairo's stock exchange has been delayed till Wednesday amid fears political instability will send companies' shares falling.

Elsewhere in the region; Bahrain's measure was largely flat as it closed 0.05 per cent to 1,468.36 points; Oman's index gained 0.6 per cent to 6,955.16 points and Qatar increased 0.7 per cent to 9,016.03 points.