ADX hits 4-month high on earnings

Abu Dhabi’s benchmark stock index on Tuesday advanced to the highest level in more than four months after Dana Gas and Abu Dhabi National Energy Company posted higher second-quarter earnings.

Dana Gas which said on Monday it was committed to finding a “consensual solution” on a $1 billion Islamic bond due in two months, rose 2.6 per cent 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 three per cent.

The ADX General Index advanced 0.3 per cent to 2,553.56 points, the highest since April 8. About 50 million shares traded in Abu Dhabi on Monday, compared with a 12-month daily average of 59 million. Dubai’s DFM General Index fell 0.24 per cent to 1,577.61 points. Dana Gas said second-quarter profit climbed 46 per cent to Dh181 million ($46 million) as investment income rose and income-tax expenses fell.

Taqa said second-quarter net income increased to Dh447 million from Dh435 million 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 per cent this year on concern over its ability to repay debt and after its biggest shareholder, Crescent Petroleum Company, said it has no plan to provide cash to the gas producer.

The stock gained the most since August 5, rising to 40 fils. Taqa shares climbed 1.6 per cent to Dh1.28, the highest close since June 21. In Kuwait, National Industries Group Holding rallied 5.4 per cent, the most since November 22, to 194 fils. Kuwait’s SE Price Index gained 0.2 per cent. Saudi Tadawul All Share Index slipped 0.1 per cent while Oman’s MSM30 Index and Qatar’s QE Index gained less than 0.1 per cent. The Bahrain Bourse All Share Index was little changed.