Dana Gas said it would honour the $920m on its Islamic bond due to mature in October
UAE markets end mixed with Abu Dhabi-listed Dana Gas ending
flat after the energy firm said it will honour the outstanding $920m on its
Islamic bond maturing in October.
The stock rose as much as 8.8 percent intraday recovering
from an all-time low. Shares in Dana Gas are down 17.8 percent so far in
"Some investors believing that at this level, Dana
offers an attractive entry point. The stock looks like it has been
oversold," said Abid Riaz, financial advisor at EFG-Hermes.
Investors remain cautious on the lack of clarity from the
energy firm on how it will be able to meet its debt obligations.
The firm said it is in constructive discussions with the
Egyptian government over delayed payments.
Abu Dhabi's index fell 1.4 percent to 2,293 points, its
lowest close since Feb. 2009.
"Nobody is willing to take the risk to come and buy at
this point, it would be like catching a falling knife," said Sebastien
Henin, portfolio manager at The National Investor.
"There is money on the sidelines [in UAE], but people
are waiting and watching for something interesting."
Telecoms operator Etisalat fell 4.2 percent and Abu Dhabi
Commercial Bank shed 1.1 percent.
Dubai's benchmark climbed 0.7 percent to 1,310 points,
rising from Monday's all-time closing low.
In Qatar, the index ended 0.5 percent lower at 8,600 points
with losers outnumbering gainers 14 to seven.
Oman's market slipped 0.6 percent to 5,602 points, while
Kuwait ticked up 0.5 percent to 5,789 points.
Saudi Kayan Petrochemical tumbled after reporting a widening
fourth-quarter loss, leading declines as Saudi Arabia's index fell to a
Shares in Kayan, a unit of Saudi Basic Industries Corp (SABIC),
fell 6.4 percent.
Kayan said its quarterly net loss surged to SR190.8m ($50.9m),
citing a decrease in the prices of petrochemical products, according to a
SABIC shed 0.5 percent.
National Industrialization (Tasnee) dipped 2 percent after
it said its quarterly net profit rose 42.7 percent to SR544m due to increased
Bakheet Investment Group was expecting the firm to post a
profit of SR670.9m.
Banque Saudi Fransi slipped 1.2 percent after its quarterly
net profit fell 6.8 percent, missing analyst estimates.
"We believe the deviation was mainly on account of
lower than anticipated other operating income and a possible higher than
expected provisioning expense," Global Investment House said in a note.
"The bank's credit quality remains supportive for
capturing greater opportunities, arising from improving business conditions in
the kingdom and we expect the bank to do well in 2012.”
Saudi Arabia's Almarai Co, the Gulf's biggest dairy firm by
market value, dipped 0.8 percent. It reported a small rise in fourth quarter
profits on Tuesday, but said higher raw material costs had a negative impact.
Saudi Cement Co climbed 0.3 percent. It posted a 39.7
percent rise in its fourth-quarter net profit, beating analyst forecasts, on
higher production and demand.
The kingdom's benchmark slipped 0.3 percent to 6,399 points,
slumping to its lowest since Jan. 4.