You are here: Home » Markets » News
Business Standard

Mysterious 2,819% stock rally has traders scratching their heads

The uninterrupted surge has made it the best performing stock worldwide in the past 12 months among companies worth $1 billion or more

stock market | Coronavirus | stock market rally


stock, market, shares, investment, investors, trading, sensex, growth, technology
The stellar rise in the shares is not easy to explain

An Abu Dhabi-based investment holding company is leaving traders and investors scratching their heads after a 2,819 per cent surge in its stock in the past 12 months, with very low trading volumes.

International Holdings (IHC), which derived most of its revenue in 2019 from fish farming in the United Arab Emirates, has reached a market value of $14 billion, up from about $133 million a year ago. The steep rally in its shares hasn’t been dented by this year’s global equity market meltdown sparked by the pandemic, or the collapse in oil prices which roiled West Asian The company’s shares are up 351 per cent in 2020.

ALSO READ: Govt borrowing may spike yields, dent gilt fund returns due to MTM impact

The uninterrupted surge has made it the best performing stock worldwide in the past 12 months among companies worth $1 billion or more, and IHC is now the fifth-biggest listed group in the UAE by market value, after Emirates Telecom Group, First Abu Dhabi Bank , Emirates NBD, and DP World.


The stellar rise in the shares is not easy to explain: At the end of last year, the company had total assets of only about $1.1 billion, with net profit for the year at $138 million, according to its annual report. It has been on a buying spree since the start of 2019, although none of the acquisitions had big price tags.

PAL Cooling Holding features among its biggest purchases, after IHC issued new shares worth about $357 million to pay for the firm.

ALSO READ: Yields jump 20 bps on borrowing target hike, banks stem free fall

The stock advanced 9.2 per cent to 27.96 dirhams in Abu Dhabi on Monday, while the local gauge rose less than 0.1 per cent.

Despite the sharp rise in the shares over the past year, trading volumes have been extremely low. In the past 12 months as of May 10, there were 9,585 different trades on the stock, an average of 30.9 per day.

On April 13, the day with the highest volume of shares this year, twelve different big block trades were settled at 17.24 dirhams ($4.69), a 15 per cent increase from the previous close.

ICICI Securities may entirely move to work from home ICICI Securities, India’s largest listed brokerage, is looking at jobs that could be completely moved to a work-from-home model as the pandemic forces businesses to reimagine workplaces. “We have just about 20 per cent of people coming to the office now so it is possible,” Vijay Chandok, the firm’s chief executive officer, said over phone. “We are thinking very seriously of examining the types of roles and jobs that can become long-term work-from-home.” Bloomberg Lankan market closes soon after reopening

Sri Lanka’s opened after a seven-week trading halt only to shutter within minutes, following a more than 10 per cent drop in a gauge of blue chip shares. The benchmark Colombo All Share Index settled 3.9 per cent lower at 4,392.43 after a slide at the open triggered a circuit breaker that ended trading.

Bloomberg Govt clarifies rights issue procedure The MCA on Monday provided clarity on certain procedural requirements related to rights issues by firms. In a circular, the ministry said that inability to send notices through postal or courier services to shareholders in the wake of the pandemic would not be viewed as a violation of the Companies Act. PTI

First Published: Tue, May 12 2020. 01:02 IST