x Abu Dhabi, UAEFriday 21 July 2017

Dana gains on calmer Cairo

Shares of Dana Gas, the UAE gas explorer and producer, rose at the close of play as regional political developments in Egypt and Iraq appear to be settling down.

Dana Gas rose 2.9 per cent to 69 fils on the ADX. Courtesy: Dana gas
Dana Gas rose 2.9 per cent to 69 fils on the ADX. Courtesy: Dana gas

Dana Gas closed higher as political developments in Egypt and Iraq appeared to be settling down.

The UAE gas explorer and producer was up 2.9 per cent at 69 fils at the close of trading on the Abu Dhabi Securities Exchange, adding to its 3 per cent gain made the previous day.

"What is supporting the rebound in share price is that the situation is settling down in Egypt [where Dana has concessions]," said Julian Bruce, the director of equity sales at EFG-Hermes in Dubai.

"We are also starting to see foreign investors returning to equities in the UAE in light of what is happening in the region, as local stocks appear to be more attractive in terms of valuations, and most of the bad news locally is out of the way," Mr Bruce said.

The Iraqi prime minister, Nouri al Maliki, said the central government would respect profit-sharing contracts signed by semi-autonomous Kurdistan and foreign oil companies. Iraq's stock exchange is also scheduled to reopen for three hours on Sunday. "Any comments on a resolution in Iraq between the regional and federal government for foreign companies in exploration and production will be taken positively by companies like Dana," Mr Bruce said.

The Abu Dhabi Securities Exchange closed 0.7 per cent higher to 2,693.00 points. The Dubai Financial Market (DFM) General Index rose by 0.03 per cent to 1,606.43.

Shares in the DFM, the Arab world's only listed stock exchange, which trades as DFM Company, declined by 1.3 per cent to Dh1.46.

Aramex, the Middle East's largest courier company, declined 0.5 per cent to Dh1.94 a share after it announced, in a filing to the Dubai bourse, that it had resumed its operations in Egypt.

Elsewhere in the region: Kuwait's measure lost 0.1 per cent to 6,734.30; Bahrain's index added 1.5 per cent to 1,472.84; Oman's bourse gained 0.1 per cent to 6,892.92; and Qatar's measure lost 0.1 per cent to 8,876.20. The Saudi Tadawul All-Share Index rose 0.4 per cent to 6,616.41.

 

halsayegh@thenational.ae