By: Mahmoud Gamal
Dubai – Mubasher: Hits Telecom Holding’s stock rose early Tuesday on the back of news that the company has acquired a stake in a UK-based firm, an analyst said.
By 10:20 am UAE time, the stock surged 6% to AED 0.87 on the Dubai Financial Market (DFM), logging a turnover of AED 12.48 million after 21.53 million shares changed hands through 273 transactions.
What is happening today is mere speculation to make use of the acquisition news, financial analyst Mahmoud Ziad told Mubasher, adding that there are indicators of improvements in the company’s operating performance.
Late Monday, Dubai- and Kuwait-listed Hits Telecom announced acquiring a 38% stake in Britain's Balsamee with an option to increase its stake to 51%.
Under the deal, Hits will provide digital healthcare services.
Changing the company’s name and targeting a leading position in the field of digital services in the Middle East in the next five years, amidst a strong leadership, will help the company overcome its losses by the end of 2017 or by early 2018, the analyst added in a comment to Mubasher.
In the meantime, Hits’ stock gained 2.77% on Boursa Kuwait.
Translated by: Nada Adel Sobhi
