Dana Gas shares down as London sukuk trial set to resume

North Korea tensions weigh on market generally

DUBAI: Shares of Abu Dhabi-listed Dana Gas fell sharply on Sunday after news that a London court hearing on its maturing sukuk issue would resume.

After several delays last week, a London High Court trial on the validity of $700 million of sukuk issued by Dana will go ahead on Monday. Dana said in June it would not repay holders of its Islamic bond, or sukuk, because it had become invalid under UAE law.

The case is being fought in UAE and British courts, and sukuk holders have been hoping the London court will produce a ruling that effectively shuts down Dana’s legal campaign in both jurisdictions. The uncertainty knocked Dana’s shares 5.1 percent lower on Sunday.

“When creditors and shareholders are at odds in a legal hearing, this sends a bad signal,” said a regional fund manager.

Escalating tensions between North Korea and the United States weighed on Gulf markets in general on Sunday, dragging the Abu Dhabi index 0.3 percent lower.

The Dubai index fell 0.9 percent as 27 shares declined including Emaar Properties, which lost 1.6 percent. Only seven stocks rose.

Shares favored by foreign funds weighed on Egypt’s blue-chip index, which fell 0.6 percent; Global Telecom Holding lost 2.0 percent. But the broader EGX100 index added 0.7 percent.

The Saudi Arabian and Omani markets were closed for public holidays on Sunday.