Classifieds powered by Gulf News

Dana Gas makes up for dull day on UAE bourses

Energy firm’s shares up 14% after it reaches settlement with Kurdistan; UAE markets closed mixed amid low trade volumes

Gulf News

Dubai: Dana Gas shares jumped 14 per cent on Monday after the company reached an agreement with the Kurdistan government on payments.

Dana Gas shares closed at the intra-day high of Dh0.73, up 14 per cent and not far from the 52-week high of Dh0.77.

“The only big thing on Monday was Dana Gas,” said Sanyalaksna Manibhandu, director of research at National Bank of Abu Dhabi Securities.

“I think that there is more upside. If you take sukuk out of the valuations, there is more upside.”

The stock, which witnessed upside in late May and early June, has been witnessing sideways movement despite calling it a sukuk it issued null and void.

On Monday, shares rose 14 per cent after reports of a $1 billion (Dh3.67 billion) payment from Iraq’s Kurdistan government to settle a long-running London court case.

“The market now is looking to believe in the management after Kudistan has come to settlement and they will be working for both parties. [This] will be positive for Dana Gas and for the government,” said Manibhandu.

The wider markets in the UAE remained dull as expected.

The Abu Dhabi Securities Exchange closed 0.29 per cent higher at 4,481.28. Eshraq Properties closed 6.9 per cent higher at Dh0.93. RAK Properties gained 4.48 per cent to close at Dh0.70.

The Dubai Financial Market General Index closed 0.07 per cent lower at 3,635, with the traded value staying low at Dh200 million.

“People will come back by late September. We should have better few months ahead than we had a few months ago,” Manibhandu added.

Gulf Finance House closed 2.21 per cent higher at Dh1.85 while Emaar Properties was steady at Dh8.50. Drake and Scull closed more than a per cent higher at Dh0.388 as Dubai Islamic Bank gained half a per cent to close at Dh6.12.

“We may see markets move up as they price in the third quarter. There are a few mid-cap stocks that people that trade,” Manibhandu said.

“I’ll be playing the third-quarter numbers. We will have a look at RAK Bank. There is interest back in that bank,” he added.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.04 per cent lower at 7,258.64 while Oman’s Muscat MSM 30 index was up 0.11 per cent to close at 5,052.550.

Loading...