x Abu Dhabi, UAESaturday 22 July 2017

Egyptian discovery puts Dana Gas in spotlight

Markets Update: UAE markets tracked a decline on global equities as euphoria from Osama bin Laden's death was short-lived - with video.

Energy giant Dana Gas moved into the spotlight this morning as it announced a gas discovery in Egypt.

The oil and gas company said it made a new gas discovery at a concession in the Nile Delta, and said it discovered reserves at a new pool at that location of more than 60 billion standard cubic feet of gas.

Shares were flat at 68 fils at 11.30am in Dubai this morning. It yesterday ended 1.5 per cent higher.

Aldar Properties also extended gains on speculation the Abu Dhabi developer's first quarter results would beat expectations.

Shares in the company added 1.3 per cent to Dh1.57 this morning.

But markets were largely subdued as markets tracked a decline in global markets. It follows initial euphoria on the death of Osama bin Laden, the Al Qaeda leader.

Fund managers said his death had instead increased the perception of instability on Mena region.

"What will happen next? His death doesn't bring the region any certainty," said Hassan el Salah, the head of institutional sales at Al Ramz Securities.

"It is more of a political message," Mr el Salah said.

Egypt's benchmark EGX 30 index was among the only markets in the region to respond positively yesterday as it rose to its highest level in two weeks.

But today, as the Standard & Poors 500 index ended 0.2 per cent lower, the Dow Jones Industrial Average ended flat and European markets opened in negative territory, regional bourses were trading largely.

At the open, the Dubai Financial Market was trading flat at 1,627.42 points and the Abu Dhabi Securities Exchange edged 0.2 per cent lower to 2,685.80 points.

"Maybe it will give some comfort from a political point of view but from a markets point of view we have seen no reaction," said Sebastien Henin, a portfolio manager at The National Investor in Abu Dhabi.