Drake & Scull International PJSC climbed to the highest in more than a year after Khaleej Times reported that the chief executive officer of the Dubai-based company won’t sell shares.
Drake & Scull, which supplies engineering services to the construction industry, advanced 2 percent to 98 fils, the highest close since April 2012. About 160 million shares traded, more than six times the three-month daily average, making them the most-actively traded on Dubai’s benchmark index. The DFM General Index rose 1.4 percent.
Khaldoun Tabari, who owns an 8.3 percent stake in Drake & Scull, according to data compiled by Bloomberg, told the newspaper that he will hold onto his shares.
“The comments showed he’s confident about the performance of his company and were perceived as a good sign by the market,” said Montasser Khelifi, a Dubai-based senior manager for global markets at Quantum Investment Bank Ltd.
Drake & Scull, which posted a 49 percent increase in first-quarter profit, said last month it won projects worth 1.1 billion dirhams ($299 million) in Saudi Arabia, Qatar and Abu Dhabi in the period. It said it’s “poised for significant growth in the second quarter as projects award momentum increases.” The company said this month it got contracts valued at 385 million dirhams in Saudi Arabia and India.
The shares have surged 39 percent this year, while Dubai’s gauge has soared 41 percent. Four analysts recommend investors buy the stock, six say hold and three sell, according to data compiled by Bloomberg.