The CFO of Arabtec Holding, which has seen its shares increase 70 percent so far this year, has said the reason for the surge is “obvious”.
Speaking to Arabian Business, Ziad Makhzoumi said the share price was simply down to an increase in volume of trading.
“The reason is very obvious; there is a big volume of trading on a daily basis and if there is demand then the price will go up naturally,” he said.
“If you look at the daily volume, today we are down to 8 million shares but yesterday was close to 70, the day before was close to 60 so when there is demand the price will go up naturally.”
Arabtec shares reached a 27-month high on Tuesday, accounting for more than a quarter of all shares traded on the Dubai Financial Market.
Makhzoumi said the Dubai-based firm plans to “aggressively” bid for new projects in Saudi Arabia. “At the moment we are concentrating aggressively on Saudi because this is the biggest market in the GCC,” he said. “Am I confident that we are winning more projects? Well I hope that we do,” he added.
“We usually go in at very attractive prices on all the projects but there are others who probably either have a technical advantage or they go in at a lower price so at the end of the day it’s the client who decides who it wants.”
Shares for the construction firm slipped 4 percent in early trading on Wednesday, and the company has yet to make an official announcement on why shares have climbed so high.
Analysts have said it is due to speculation that it will benefit from regional infrastructure spending. The company in January won a 25-month contract valued at $153m to expand Dubai International Airport. In November the firm said the value of a contract it had won in Saudi Arabia may rise to $400m.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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