Drake & Scull International PJSC shares surged to their highest in more than five months amid speculation the Dubai-based builder may be acquired. The company said it’s not a target.
The shares climbed 5.15 percent closing at 81.6 fils, the highest close since Oct. 31. The shares gained 13 percent in the six-day winning streak. About 71 million shares traded today, almost five times the three-month daily average volume, according to data compiled by Bloomberg. The benchmark DFM General Index rose 2.4 percent.
“There are a lot of rumors, some speculation about some companies being taken over,” said Mohammed Ali Yasin, managing director of NBAD Securities in Abu Dhabi. “The rumors have become more active,” he said. Drake & Scull shares were among benefiting from the speculations.
Drake & Scull “is not a target of acquisition by anyone and the rumors aren’t true,” Zeina Tabari, chief corporate affairs officer said by phone today. Investors could be reacting to expectations of contract announcements or on optimism about expected first-quarter earnings, she said.
Four analysts have a buy recommendation on the stock, five say hold and three recommend selling, data compiled by Bloomberg show.