x Abu Dhabi, UAESaturday 22 July 2017

Dana Gas stocks fired up in UAE as Egypt fears settle

MARKET WRAP: 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 - with video.

Dana Gas closed higher after regional political developments in Egypt and Iraq appear to be settling down, analysts said.

The UAE gas explorer and producer rose 2.9 per cent to 69 fils at the close of play 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, 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."

Prime Minister Nuri al Maliki said the central government will respect profit sharing contracts signed by semi autonomous Kurdistan and foreign oil 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 0.6 per cent higher to 2691.92. In Dubai, the emirate's main measure remained flat at 1604.45. Dubai Financial Market, the Arab world's only listed stock exchange, declined by 1.3 per cent to Dh1.46.

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Aramex, the Middle East's largest courier company, declined 0.5 per cent to Dh1.74 a share after the company announced that it had resumed its operations in Egypt in a filing to the Dubai bourse.

Elsewhere in the region, Kuwait's measure lost 0.1 per cent to 6734.30. Bahrain's index added 1.5 per cent to 1472.84. Oman's measure gained 0.1 per cent to 6892.92. Qatar's index lost 0.1 per cent to 8876.20. The Saudi Tadawul All-Share Index gained 0.3 per cent to 6605.76.