Abu Dhabi shares hit one-month high

Abu Dhabi stocks on Monday climbed to a more than one-month high, led by Dana Gas, 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 per cent to close at 4,914.23 points, the highest level since June 12. Dana Gas surged 8.2 per cent to 79 fils, extending Sunday’s 4.3 per cent advance. First Gulf Bank gained 2.7 per cent to Dh17.40, the highest since June 1.

The Dubai Financial Market General Index rose 0.68 per cent at 4,610.67 points.

Air Arabia jumped 2.9 per cent to Dh1.44 after brokerage Naeem on Sunday raised its target price for the stock to Dh1.67 from Dh1.21 with a “buy” recommendation.

Shares in construction firm Drake and Scull rose 1.3 per cent after its shareholders approved issuing a convertible bond worth Dh55 million ($15 million) to allow a strategic investor to buy into the company.

Dana Gas said on Sunday the London Court of International Arbitration ruled that the government of Iraqi Kurdistan government 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 gained after the Abu Dhabi-based lender set up a representative office in Seoul, South Korea, to boost it’s presence in Asia. National Bank of Abu Dhabi increased 4.1 per cent to Dh15.10, a one-month high.

UAE exchanges were reclassified as emerging markets in June 2013 by index provider MSCI, with the change taking effect last month.

The Doha benchmark added 0.8 per cent after slipping as much as 0.5 per cent earlier in the session. Qatar Islamic Bank was among the main supports, adding 1.5 per cent as it prepared to announce its quarterly results.

Egypt’s main index rose 1.3 per cent as most stocks were up.

Saudi Arabia’s bourse slipped 0.05 per cent.