Drake and Scull rose the highest in more than a year after the contractor announced that it had won a Dh465m contract in Egypt,its first in the country.
Shares, listed in Dubai, closed 4.6 per cent higher to Dh1.13 a share, the highest since October 2009. The company was awarded to carry out works for the Nile Corniche Project. Work is to commence immediately, with an expected completion date 2014.
"We always liked Drake and Scull (DSI) in terms of their momentum in project awards," said Majed Azzam, analyst at Alembic HC in Dubai. "DSI is trading at 13 times its price to earnings ratio, but its justified given the growth prospects for the company."
Prior to the announcement DSI's backlog was 5.5bn, the award brings the contractors backlog to 6bn, Mr Azzam said. The analyst estimates a margin of 10 per cent, which would contribute Dh50m towards its 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 1627.01.
Property stocks in Abu Dhabi declined today, led with Aldar Properties, builder of the Yas Island and Ferrari World, lost 3.5 per cent to Dh1.91 a share. Sorouh Real Estate declined 2 per cent to Dh1.47. The Abu Dhabi Securities Exchange General Index lost 0.3 per cent to 2674.18.
Elsewhere in the region, Kuwait's index gained 0.2 per cent to 6959.90. Bahrain's measure gained 0.1 per cent to 1435.79. Oman's index lost 0.5 per cent to 6965.90. Qatar's bourse gained 0.7 per cent to 8999.79. The Saudi Tadawul All-Share Index gained 0.5 per cent to 6726.73.
