Dana Gas drags on morning markets

Markets Update: Local markets hover close to negative territory in early trading as shares in Dana Gas tumbled into the red.

Local markets hovered close to negative territory in early trading as shares in Dana Gas tumbled into the red.

The Abu Dhabi Securities Exchange General Index was up slightly, rising 0.21 per cent to 2,540.

The property developer Eshraq led the index, up 9.09 per cent, adding to gains made yesterday following an announcement it will pay shareholders a dividend of 6 fils a share.

Shares in natural gas producer Dana Gas weighed on the bourse, shedding 4 per cent. The fall follows a meeting of the company's board of directors yesterday where it said it would consider a revised 2012 budget.

In a statement the board said it discussed Dana Gas's operations in Egypt and Kurdistan, the position of receivables, and matters related to its Sukuk maturing in October. Earlier in the week the yield on Dana Gas' US$1 billion (Dh3.67bn) Islamic bonds fell to a one-month low.

The Dubai Financial Market General index was up 0.44 per cent to 1,615, led by a jump in Ajman Bank shares of 8.7 per cent.

Gulf Finance House dragged on the bourse, with its shares falling 3.47 per cent in early trading.

In Saudi Arabia, the Tadawul All Share Index was up almost a percent to 7,031.26 as Brent crude held steady near $123 a barrel. Supply concerns from the standoff between Iran and the West offset worries about a global slowdown.