Tabreed Jumps on Highest Volume Since February: Dubai MoverSherine El Madany
National Central Cooling Co. advanced on the highest volume in more than two months, extending a rally since the supplier of air-conditioning systems reported a 30 percent increase in first-quarter profit.
About 88.6 million shares were traded, 7.3 times the stock’s three-month daily average and the most since Feb. 20, data compiled by Bloomberg show. Abu Dhabi-based Tabreed rose 4.2 percent to 1.72 dirhams, the highest since March 2012. The stock has gained 12 percent since the company reported profit of 47.6 million dirhams ($13 million) on April 30.
“Tabreed shares are rising on strong first-quarter numbers,” said Marwan Shurrab, vice-president at Dubai-based Gulfmena Investments Ltd.
Tabreed, the second most-actively traded stock in Dubai today, is benefiting from a recovery in the United Arab Emirates property industry that’s boosting demand for air conditioners. The company operates 59 plants in the U.A.E. and six in other Gulf Cooperation Council countries, according to its financial statements.
The stock’s 14-day relative strength index rose to 69.7 today, just shy of the 70 level that signals to some investors that the security is poised to decline. The index was at 48 before the company released earnings.
Tabreed’s shares have rallied 42 percent this year, compared with 34 percent for the benchmark DFM General Index, which gained 0.7 percent to 2,177.68, the highest since November 2009, today.