Renaissance Services SAOG (RNSS) rose to the highest level in more than a week as BankMuscat SAOG (BKMB) maintained its “buy” recommendation on the Omani services company even after the firm uncovered fraud at a unit.
The shares rallied 5.3 percent to 0.611 rial, the highest level since Aug. 15, at the 1 p.m. close in Muscat. Renaissance, which provides services to the oil and gas industry, is down 24 percent this month.
BankMuscat cited “strong growth” at the marine business of Renaissance. The share-price estimate was lowered 41 percent to 0.91 rial.
The shares on Aug. 15 retreated the most since April 2005 after the company said its unit Topaz Group was linked to financial fraud. Renaissance’s Chief Executive Officer Stephen Thomas said on Aug. 18 he is confident that the only fraud case is the one that has already been identified at the unit.
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