Riyadh - Arabstoday
Dar Al Arkan Real Estate Development was among the biggest gainers in Saudi Arabia\'s benchmark stock index on investor speculation that the company will benefit from about $500 billion (Dh1.83 trillion) in government spending. The stock surged 8.5 per cent, the most since May 2009, to 8.9 riyals at the close in Riyadh as the volume of shares traded jumped to the highest since November 2009. The shares were the third-biggest gainer on Saudi Arabia\'s Tadawul All Share Index, which advanced 0.6 per cent to 6,663.48, the highest since June 1. Dar Al Arkan\'s shares, up 23 per cent this year, trade at a price-to-earnings ratio of 9 times compared with 14 times for the country\'s benchmark. Attractive returns Article continues below \"Dar Al Arkan has been under the radar of investors for some time now because of its attractive price-to-earnings ratio,\" Abdullah Alawi, head of research at Jeddah, Saudi Arabia-based Aljazira Capital, said in an e-mailed response to questions. The gains have also been driven by \"the buoyant sentiment among investors toward large real estate companies in the kingdom, which are believed to benefit from the massive upcoming housing projects financed by the government.\" Dar Al Arkan led advances yesterday on the Real Estate Development Industries Index, which has gained 9.2 per cent this year. Ten analysts including Alawi recommend investors buy the shares of the company, while five have a hold rating on the stock.