NMC Health Plc, a United Arab Emirates diversified healthcare company, surged to a record in London trading on reports Dubai plans to make medical insurance for residents mandatory.
NMC rose 8.9 percent to 414.30 pence at 3:16 p.m. in London, the highest level since trading began in April 2012. The shares climbed as much as 13 percent, with volume at almost seven times the three-month daily average, according to data compiled by Bloomberg.
Dubai will require its residents and visitors to have compulsory health insurance cover from their employers or sponsors, Khaleej Times, a national daily, said in a report today, citing health officials. The emirate’s government endorsed its medical care law yesterday, according to U.A.E’s official news agency W.A.M.
“It’s a sea-change in the healthcare market” and NMC is “well exposed” to it, Charles Weston, a London-based analyst at Numis Securities Ltd., said. The impact in Abu Dhabi was “huge” when it introduced this policy, he said.
NMC Health, the first Abu Dhabi company to list on the premium segment of the London Stock Exchange, has three healthcare facilities in Dubai and owns pharmacies across the country.