Kurdish Ruling Boosts Dana to December High; Egypt Shares Slump

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Dana Gas PJSC’s stock jumped to the highest level in seven months after an arbitration court ruled in its favor. Egypt’s index fell the most since December.

The company’s shares soared 14 percent to 58 fils after Dana Gas said the London Court of International Arbitration handed down a partial ruling confirming its consortium has exclusive rights to develop and produce gas from two fields in Kurdistan. The court also confirmed the Kurdish government’s obligation to pay the group, Dana Gas said, adding it’s owed $1.94 billion as of the end of May.

The ruling is a step closer for the Sharjah, United Arab Emirates-based company to retrieve cash from the Kurdish government. Dana Gas failed to repay almost $1 billion of Islamic bonds in 2012, when payments from Iraq and Egypt stalled.

“The case is clearly moving forward,” Abdul Kadir Hussain, chief executive officer at Mashreq Capital DIFC Ltd., said by phone from Dubai on Sunday. “It’s a positive for Dana Gas because it means it could get its cash.”

Abu Dhabi’s ADX General Index, of which Dana Gas is a member, advanced 0.2 percent to 4,737.58 at the close. Dubai’s DFM General Index fell 0.5 percent, while Qatar’s QE Index declined 0.9 percent, Oman’s index lost 0.2 percent and Bahrain’s gauge retreated 0.1 percent. Kuwait’s measure added 0.1 percent and Saudi Arabia’s Tadawul All Share Index gained 0.3 percent.

Egypt IPO

In Egypt, the benchmark EGX 30 Index reversed early gains of as much as 0.9 percent to close down 1.2 percent, the lowest since December. Commercial International Bank Egypt SAE, which accounts for 39 percent of the gauge, fell 1.5 percent. The central bank devalued the pound by 1.3 percent today, following a similar move on Thursday.

Emaar Misr for Development SAE, the country’s second-biggest listed real-estate developer, closed 3.7 percent higher on its trading debut after raising 2.28 billion Egyptian pounds ($291 million) in the nation’s biggest initial public offering this year. Egypt’s bourse uses a volume-weighted average price to determine closing values, masking the stock’s drop of as much as 2.4 percent in the last 15 minutes of the day.

“Emaar’s performance was disappointing, leading to weakness in the rest of the sector and helping drag the rest of the market down,” Ashraf Akhnoukh, the manager for Middle East and North Africa at Commercial International Brokerage Co., said by phone. “Finishing the day below the IPO price indicates some investors were only in for quick gains.”

Israel’s TA-25 Index dropped 0.6 percent. Oil and gas stocks fell as the government struggled to introduce regulation of natural gas fields that would be acceptable to developers and protesters claiming the absence of competition in the industry.

The government’s benchmark bonds due March 2024 rose a second day, sending the yield down two basis points to 2.3 percent.

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