Markets Update: Abu Dhabi's stock-market rose after Dana Gas' statement saying the UAE explorer and producer will honor debt obligations. Cheap valuations also prompted new entrants to the market.
ADX up on Dana Gas news
Abu Dhabi's stock market rose after Dana Gas said on Tuesday that the UAE explorer and producer would honour its debts.
Cheap valuations also drew new entrants into the market.
Dana Gas surged 8.8 per cent to 83 fils. The shares had declined more than 40 per cent as investors worried that the company would not be able to repay a US$1 billion sukuk due in October.
"The statement has helped calm investors," said Hassan El Salah, the head of institutional equities at Al Ramz Securities in Abu Dhabi.
Property stocks also rose. Aldar Properties and Sorouh Real Estate jumped 7.7 per cent and 7.2 per cent, respectively, to trade at 83 fils and 74 fils. The Abu Dhabi Securities Exchange General Index rose 1.5 per cent to 1,331.22. "New money is coming into the market," Mr El Salah said. "Prices of stocks are ridiculously cheap, with some trading lower than if they were priced in liquidation mode."
Property and construction stocks were in focus on the Dubai Financial Market General Index after Union Properties, a Dubai developer, said it had reached an agreement with Emirates NBD to settle Dh1.1bn of debt. The shares surged 12.2 per cent to 27 fils.
Elsewhere in the region, Kuwait's measure rose 0.1 per cent to 5,800.40, Bahrain's was little changed at 1,137.52, Oman's MSM 30 Index slipped 0.1 per cent to 5,595.60, and Qatar's QE Index was down 0.5 per cent to 8,555.22. The Saudi Tadawul All-Share Index was up 0.1 per cent to 6,377.99.