Saudi expansion plans buoy Drake and Scull shares
Engineering and contracting company Drake & Scull International closed higher today as traders took comfort in the company's expansion plans.
Shares in the company ended the day 0.2 per cent higher to 99 fils, one of the only Dubai-based company's to end the day on a positive note.
The gain is in "anticipation of more orders and [more] acquisitions in Saudi," said Mala Pancholia, a senior analyst at NBK Capital in Dubai, though she added.
DSI said it partnered with Saudi-based Zamil Group, an investment company as part of its expansion strategy and last week said it had 1.5 billion worth of orders at the end of September.
It was one of the only stocks to end higher yesterday as the Dubai Financial Market (DFM) General Index retreated 0.5 per cent to 1,632.41 points.
Heavyweight property stocks weighed on the market as Emaar Properties, which was also the second-most actively traded stock by volume, lost 1.1 per cent to Dh3.53 and in Abu Dhabi, Aldar Properties slipped 1.3 per cent to Dh2.3.
But the capital's biggest loser was telecoms operator Etisalat, which fell 0.5 per cent to Dh10.8. The UAE's largest company by market capitalisation announced it will cut 300 jobs to save money earlier this week.
The Abu Dhabi Securities Exchange lost 0.2 per cent to 2,716.33 points.
Bahrain's index was closed for the day.
Elsewhere in the region: Qatar fell 1.2 per cent to 8,631.16 points; Kuwait dropped 0.7 per cent to 6,798.00 points; Oman moved 0.06 per cent higher to 6,684.22, and the Saudi Tadawul All-Share Index was 0.07 per cent higher at 6,581.51 points.
Summary - Drake and Scull International's expansion plans buoyed investor confidence and nudged its share price higher
Published: December 20, 2010 04:00 AM