National Central Cooling Co. (TABREED) soared to the highest level in more than a year on investor optimism the supplier of air-conditioning systems is benefiting from a construction recovery in the United Arab Emirates.
The shares rose 5.2 percent to 1.82 dirhams, the highest close since March 2012. The stock was the second most active after Dubai Financial Market on Dubai’s benchmark index with about 81 million shares traded, or 5.8 times the three-month daily average. Dubai’s DFM General Index increased 0.7 percent.
Dubai is likely to add at least 11,200 rooms by 2015 as hotels such as Sofitel Palm Jumeirah, Anantara Royal Amwaj and Oberoi Business Bay are completed, broker Jones Lang LaSalle Inc. said last month. Saudi Arabia is pursuing more than $500 billion of investments to build infrastructure and industry, and create jobs for youth. Tabreed said April 30 one new cooling plant came online in the kingdom.
“Tabreed is generating momentum due to expansion in infrastructure projects in the U.A.E. and Saudi Arabia,” said Montasser Khelifi, a Dubai-based senior manager for global markets at Quantum Investment Bank Ltd. “Investors see opportunity in the stock backed by public investments.”
Tabreed shares have rallied about 16 percent since the company reported profit of 47.8 million dirhams ($13 million) on April 30.
The stock’s 14-day relative strength index rose to 69.6 today, just shy of the 70 level that signals to some investors that the security is poised to decline. The measure was at 48 before the company released earnings.
To contact the reporter on this story: Sherine El Madany in Dubai at email@example.com
To contact the editor responsible for this story: Claudia Maedler at firstname.lastname@example.org