Shares of Drake and Scull rose yesterday as the company said it was awarded a contract in Egypt, its first in the country
DSI shares rise sharply
Drake & Scull International (DSI) rose the highest in more than a year after it announced it had won a Dh465 million contract in Egypt, its first in the country.
Shares in DSI, listed in Dubai, closed 4.6 per cent higher at Dh1.13, the highest since October 2009. The company won the contract to carry out works for the Nile Corniche Project, which are to start immediately with an expected completion date of 2014.
"We always liked Drake & Scull in terms of their momentum in project awards," said Majed Azzam, an analyst at Alembic HC Securities in Dubai. Before the announcement, DSI's backlog of contracts amounted to Dh5.5 billion. Mr Azzam said the award raised that figure to Dh6bn. He estimated a margin of 10 per cent, which would contribute Dh50m towards the contractor's net profits.
"It's a big project and the most significant for DSI," Mr Azzam said.
Arabtec Holding, Dubai's biggest contractor, gained 2.7 per cent to Dh1.85. The Dubai Financial Market General Index gained 1.4 per cent to 1,627.01.
Property stocks in Abu Dhabi declined yesterday, led by Aldar Properties, which lost 3.5 per cent to Dh1.91 a share. The Abu Dhabi Securities Exchange General Index lost 0.3 per cent to 2,674.18.
Elsewhere in the region: Kuwait's index gained 0.2 per cent to 6,959.90; Bahrain's measure gained 0.1 per cent to 1,435.79; Oman's index dropped 0.5 per cent to 6,965.90; and Qatar gained 0.7 per cent to 8,999.79.
The Saudi Tadawul All Share Index gained 0.5 per cent to 6,726.73.