Abu Dhabi Stocks Rise to Four-Month High on Earnings
Dana Gas, which yesterday said it was committed to finding a “consensual solution” on a $1 billion Islamic bond due in two months, rose 2.6 percent and was the most traded stock on Abu Dhabi’s index. State-run Abu Dhabi National Energy, also known as Taqa, climbed to the highest since June after quarterly profit gained 3 percent. The ADX General Index (ADSMI) advanced 0.3 percent to 2,553.56, the highest since April 8, at the close in Abu Dhabi. Dubai’s DFM General Index (DFMGI) fell 0.2 percent.
Dana Gas said second-quarter profit climbed 46 percent to 181 million dirhams ($46 million) as investment income rose and income-tax expenses fell. Taqa said second-quarter net income increased to 447 million dirhams from 435 million dirhams a year earlier.
“Better profit at Dana Gas helped boost sentiment today,” said Nabil Rantisi, managing director of brokerage at Abu Dhabi- based Menacorp.
Dana Gas shares have dropped 11 percent this year on concern over its ability to repay debt and after its biggest shareholder, Crescent Petroleum Co., said it has no plan to provide cash to the gas producer. The stock gained the most since Aug. 5, rising to 40 fils. Taqa shares climbed 1.6 percent to 1.28 dirhams, the highest close since June 21.
Crude oil for September delivery gained as much as 0.9 percent to $93.53 a barrel in New York on speculation that inventories declined for a third week in the U.S., the world’s biggest crude consumer. Gulf Arab oil exporters, including Qatar and the United Arab Emirates, supply about a fifth of the world’s oil.
Persian Gulf states will celebrate the Eid holiday, which marks the end of Ramadan, next week, with Saudi Arabia (SABIC)’s market closing for business from Aug. 18 through Aug. 22.
In Kuwait, National Industries Group Holding (NIND) rallied 5.4 percent, the most since Nov. 22, to 194 fils after the Kuwait- based investment company said it’ll pay $475 million of Islamic bonds on maturity. The company last month proposed a four-year extension.
Kuwait’s SE Price Index (KWSEIDX) and the Bloomberg GCC 200 Index (BGCC200) increased 0.2 percent. Saudi Tadawul All Share Index (SASEIDX), Oman’s MSM30 Index (MSM30), Qatar’s QE Index and Bahrain Bourse All Share Index (BHSEASI) gained less than 0.1 percent.
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