Investors have traded Dana Gas shares higher on further optimism about its Iraqi operations.
Nearly half of the trading on the bourse today was made on shares of the UAE gas explorer, after the company said it expected to boost its output capacity in the Iraqi Kurdistan region by 50 per cent in the next two years. "Dana Gas is definitely a local play for investors and is one of the most favourable and most stable stocks traded today," said Alfred Fayek, the managing director of MENA equity sales at EFG-Hermes in Dubai.
Dana Gas shares were up 1.2 per cent at 83 fils at the close of trade yesterday. Brokers attributed the further optimism by traders to the announcement by Dr Hussein al Shahristani, the Iraqi oil minister, that his nation's proved reserves of oil have risen by 25 per cent to 143 billion barrels. If that estimate was accepted by organisations such as OPEC, it would mean Iraq would surpass Iran as the nation with the world's second-largest proved reserves.
"Dana Gas is a gas explorer. They only need to find the reserves and turn gas into cash," Mr Fayek said. halsayegh@thenational.ae
