Dana Gas at ten-month high; UAE markets extend gains

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Dana Gas chairman Hamid Jafar.

Dana Gas chairman Hamid Jafar.

Abu Dhabi-listed Dana Gas surges to a ten-month high after a top shareholder backed the firm's plans to restructure US$920m of debt, while Dubai's index extends gains in heavy trade.

Crescent Petroleum, the biggest shareholder in Dana, said the terms of the debt restructuring deal are fair and protect shareholders.

Dana offered bondholders US$70m in cash and agreed to refinance the remaining US$850m of debt through two new five-year Islamic bond issues - one an ordinary sukuk and the other convertible into equity - paying an average return of 8 percent.

Shares in Dana are up 6.1 percent at 0.52 dirhams, reaching its highest price since February 29.

Aldar Properties and Sorouh Real Estate each advance 1.3 percent. Sources told Reuters on Tuesday the two firms have agreed on initial merger terms.

Abu Dhabi's index climbs 0.2 percent to 2,723 points.

Dubai's bourse hits a fresh ten-month high, climbing 0.9 percent to 1,761 points. More than 200m shares change hands in the opening hour of trading, which more than the daily total for most sessions last year.

Dubai Financial Market, the Gulf's only listed bourse, rises 5.4 percent and builder Arabtec advances 4.9 percent.

"The benchmark for Arabian shares rose 4.6 percent since the beginning of the year and we expect this trend to continue, at least until the end of the earnings season," Al Masah Capital says in a note. "Caution would be necessary in anticipation of some profit taking."

Traders say funds that had been on the sidelines have bought back in ahead of fourth-quarter earnings and dividend announcements.

Shares in National Central Cooling (Tabreed) jump 12.2 percent, having rallied almost 15 percent in the previous session. Traders say the move is speculative and lacks a fundamental reason, with Tabreed among the most liquid stocks on the bourse.

Elsewhere, Qatar's index rises 0.3 percent to 8,721 points and Oman's measure climbs 0.2 percent to 5,815 points, while Kuwait's index is little moved.

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Posted by: Andy

That .52 price is a joke lol. Years ago it listed at 1 DHM per share and that is not including the subscription fees either. If you add that then it is roughly 1.02 DHM per share so here we have a stock that several years later is being sold at roughly half price of the subscription price to list. Over the years this stock has not gained but lost 50% of its value. I personally would never buy a share in that company.

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