Drake & Scull Gains Most in 3 Months on Profit Bets: Dubai MoverAlaa Shahine
Drake & Scull International PJSC surged the most in almost three months amid bets projects won by the supplier of engineering services to the construction industry will boost profits.
The shares jumped 3.9 percent, the most since Jan. 17, to 77.6 fils at the close in Dubai. About 33.4 million shares traded, the most of any stock on the benchmark DFM General Index, which climbed 2.2 percent.
The Dubai-based company said last month it was awarded contracts valued at 369 million dirhams ($100 million), including for a data center in Saudi Arabia and a utility project in Abu Dhabi, the capital of the United Arab Emirates. Net income may increase 10 percent this year to 141 million dirhams, according to the mean estimate of nine analysts on Bloomberg.
“In general, investors are optimistic about the new contracts and the prospects of the first quarter results,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities.
Drake & Scull shares have gained 10 percent this year, trailing the 18 percent increase in Dubai’s measure after the company reported a 42 percent drop in profit last year. First-quarter profit may decline to 34 million dirhams, according to NBK Capital estimates, after 37.6 million dirhams in the year-earlier period.
Four analysts have a buy recommendation on the stock, five say hold and three recommend selling, according to data compiled by Bloomberg.