Du Surges on Block Trade

Du Surges on Block Trade

Telecoms operator du surges after 2.4 million shares change hands in a trade that occurs in the final minute before the market close.

April 15, 2012 2:49 by kippreport

Telecoms operator du surges after 2.4 million shares change hands in a trade that occurs in the final minute before the market close.

Du climbs 14.5 percent, trading 3.8 million shares on the day. The 30-day full-day average volume traded on the stock is 3.36 million, according to Reuters data.

“Some traders say it’s an error but I don’t think that is the case,” says Saad al-Chalabi, a technical analyst for institutional equities at Al Ramz Securities.

“We think it was a legitimate trade,” he said, adding that no further information was available on the transaction.

The stock rose through March before taking a breather early this month ahead of first-quarter earnings expected soon.

“Most believe that du’s first-quarter earnings will be really good….good margins are expected,” says Samer al-Jaouni, general manager of Middle East Financial Brokerage Co.

Analysts polled by Reuters expect the telecoms firm’s average net profit to rise by 36 percent in the first quarter.

The Dubai index ends 0.2 percent lower at 1,675 points, as gloomy economic data from China and other global concerns weighed on stocks. Emaar Properties and Union Properties drop 1.6 percent and 2.7 percent respectively.

Abu Dhabi index and Qatar’s bourse slip 0.4 percent and 0.5 percent respectively