Dubai
Continued accumulation was witnessed in shares of Dana Gas on Thursday as an injunction order against payments to bond holders halted any possibility of converting bonds into equity, which could had triggered selling pressure at higher levels.
Dana Gas shares closed 7.35 per cent higher at Dh0.73, continuing its gaining streak. About 290 million shares were traded on the name, making it the most actively traded stock in Abu Dhabi.
“There can’t be conversion. If you are worried about a big wall of conversion at a certain level, now you are not worried,” Sanyalaksna Manibhandu, director Research, National Bank of Abu Dhabi Securities said. “The funds could betting that Dana could collect money sooner than everyone thought and or the possibility that Dana Gas could prevail on sukuk holders,” Manibhandu said.
Dana Gas shares may witness profit-taking given that shares have risen swiftly. “There could be shift in risky money given the scale at which it has gone up,” Manibhandu said. Dana Gas shares have gained more than 60 per cent since June 1.
CBI closed 3.31 per cent higher at Dh1.15. RAK Bank closed 2.48 per cent higher.
Waha Capital closed 1 per cent lower at Dh1.67. “If Waha manages to break the Dh1.79 resistance we could easily see it above the Dh2, stock has been selling off ever since going Ex-Div,” said Hisham Khairy, Head of Institutional Trading at Menacorp. Rak Properties closed 1.52 per cent higher.
Reversal
The Dubai index reversed early minor losses on Thursday as Emaar Properties breached the keenly watched Dh8 per share mark.
The Dubai Financial Market General Index closed 0.25 per cent higher at 3,459.44.
Emaar Properties closed 1.27 per cent higher at Dh8.00, the highest level in 52 weeks. Union Properties closed at Dh0.953, up 2.14 per cent. DP World closed 2 per cent lower at Dh20.80. Dubai Islamic Bank closed 1 per cent lower at Dh5.76.
Al Madina closed at Dh0.78, up 0.38 per cent. “The stock would face some resistance around the Dh0.90,” Khairy said.
A 4 per cent fall in oil prices kept Saudi investors depressed. Saudi Arabi’s Tadawul index closed at 6,820.81, down 0.48 per cent. The parallel market or Nomu closed 1.82 per cent lower at 3,975.32. The energy index 0.42 per cent lower at 4,008.10. The materials index closed 0.72 per cent weaker at 4,608.79. The Qatar exchange index closed 0.74 per cent higher at 9,257.90. The Muscat MSM 30 index closed 0.99 per cent lower at 5,248.41. The Bahrain bourse index closed flat at 1,327.02.
