Abu Dhabi Shares Rise to Month High on Dana’s Kurdish Cash WinJames Doran
Abu Dhabi stocks climbed to a more than one-month high, led by Dana Gas PJSC, after a London court ordered the Kurdish government to keep making payments to the fuel producer while an arbitration case remains unresolved.
The ADX General Index rose 1.5 percent to close at 4,914.23, the highest level since June 12. Dana Gas surged 8.2 percent to 79 fils, extending yesterday’s 4.3 percent advance. First Gulf Bank PJSC gained 2.7 percent to 17.40 dirhams, the highest since June 1.
Dana Gas said yesterday the London Court of International Arbitration ruled that the government of Iraqi Kurdistan should make regular payments while its case against the region’s administration is continuing. The company is seeking to recover more than $400 million relating to rights and a contract it signed with the regional government in 2007.
“It’s a delayed response to this Kurdish news, especially that international investors were likely off yesterday,” Ramez Merhi, director of asset management at Dubai-based Al Masah Capital, which manages $545 million, said by e-mail. “There is decent foreign flow in most names, specifically in banks and some in Dana Gas.”
First Gulf Bank PJSC gained after the Abu Dhabi-based lender set up a representative office in Seoul, South Korea, to boost its presence in Asia. National Bank of Abu Dhabi PJSC increased 4.1 percent to 15.10 dirhams, a one-month high.
U.A.E. exchanges were reclassified as emerging markets in June 2013 by index provider MSCI, with the change taking effect last month.