Drake and Scull lifts DFM on hopes for Dh6bn of contracts

Drake & Scull in Dubai has been tendering for contracts that analysts say will support their growth over the long term.

Dubai's main measure edged higher yesterday, led by Drake and Scull on news that the company has been tendering for contracts valued at Dh6 billion (US$1.63bn) in the UAE and Saudi Arabia. "The support they are getting outside of the UAE is sufficient to sustain their long-term growth," said Rami Awwad, the senior business development manager at Al Awael Securities in Abu Dhabi. Drake and Scull's shares rose 4.4 per cent to Dh0.94. The board of the engineering contracting company also recommended a 7 per cent cash dividend yesterday.

"The focus is liquidity. They will still need to consider their immediate cash flow," Mr Awwad said. The Dubai Financial Market General Index climbed 2.2 per cent to 1,761.18, continuing its recent show of strength. The bourse's shares gained 2.2 per cent to close at Dh1.84. The industrials sector led the index's advance, up 3.3 per cent. The Abu Dhabi Securities Exchange General Index fell 0.1 per cent to 2,860.83. Aldar Properties closed 3.7 per cent higher at Dh4.17.

RAK Properties crept 1.8 per cent higher to Dh0.54 and Sorouh Real Estate ended trading 3.3 per cent higher at Dh2.47. The main measures in Qatar and Muscat rose 1.6 per cent and 0.1 per cent, respectively. Kuwait's bourse lost 0.6 per cent, while the Bahrain Stock Exchange Index remained unchanged. The Saudi Tadawul All Share Index closed 0.3 per cent higher. [e-mail]