Dana Gas bucks quiet trend at UAE bourses

dubai — Stock markets in the UAE were mostly quiet on Monday as they resumed trading after a long holiday weekend for Eid Al Adha, but Abu Dhabi-listed Dana Gas soared after it agreed on overdue payments from Iraqi Kurdistan’s government.

Dana jumped 14.1 per cent to Dh0.73, its highest level since early July, and was by far the market’s most heavily traded stock, accounting for over half of the day’s volume in Abu Dhabi.

Iraqi Kurdistan agreed to immediately pay Dana’s gas production consortium $1 billion, including $400 million that will be used for investment in the region; Dana will receive 35 per cent of the money. In addition, $1.24 billion will be reclassified from debt owed by the government to outstanding costs to be recovered by the consortium from future revenues.

The Kurdistan payment will boost Dana’s cash balance, which was $337 million at the end of June. It is not clear that it will make any difference to the dispute over the company’s $700 million of outstanding sukuk, which Dana is refusing to repay on the grounds that they have become invalid. Other Abu Dhabi stocks were much more subdued, with the index rising only 0.3 per cent. In Dubai, the index slipped 0.1 per cent but it closed well off the day’s lows and trading volume rose, which were positive technical signs.

14% jump in Dana Gas shares on Kurdistan payment deal