Arabtec Holding PJSC, the company building the Abu Dhabi branch of the Louvre, jumped the most in more than a year.
The stock surged 9.9 percent, the biggest gain since April 2012, to close at 2.33 dirhams in Dubai, bringing the advance this year to 4 percent. About 81.9 million shares traded, or 6.2 times the three-month daily average, making the company the most-actively traded stock in Dubai’s benchmark index.
United Arab Emirates construction projects are picking up, with Arabtec winning contracts to build the museum, an airport terminal in Abu Dhabi and this week a 243 million-dirham ($66 million) deal from Emaar Properties PJSC. Shares of the developer of the world’s tallest tower have gained 46 percent this year. Goldman Sachs in a note to investors yesterday gave a 12-month price estimates for Arabtec of 2.57 dirhams, down from a previous projection of 2.91 dirhams, while maintaining its neutral recommendation.
Arabtec “has been winning new contracts lately, and the stock got a boost from Goldman Sachs,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities. “A technical rebound is overdue.”
The company in February said it plans to raise 6.4 billion dirhams through a rights issue and a convertible bond. An external spokesman for Arabtec said the company doesn’t comment on the share price.