Demand fires up Dana Gas

Market Wrap: Dana Gas, the energy giant, was among the top gainers in Abu Dhabi in afternoon trading after HSBC initiated "overweight" coverage on the stock

Shares of Dana Gas climbed 3.4 per cent. Wam

The energy company Dana Gas was among the top gainers in the capital yesterday after HSBC said the company would benefit from strong demand for fuel from the power and chemical sectors.

Shares in the company climbed after it was initiated with an "overweight" rating by HSBC brokerage.

It rose 3.4 per cent to 61 fils.

HSBC analysts said that although the Middle East held almost half the world's oil and gas reserves, it still had one of the world's largest petrol deficits and a growing gas shortage. "This paradox of scarcity amid plenty drives our initiation," the analysts wrote in a note to investors.

While early gains were clocked on the capital's market, the Abu Dhabi Securities Exchange General Index ended 0.3 per cent lower at 2,704.19, weighed down by a sell-off in banking and property stocks.

The Dubai Financial Market General Index rose 0.6 per cent to 1,516.93 as shares in bellwether property stocks maintained early gains.

Investors looked to the emirate as the main beneficiary of a government decision to extend the visa period for property investors.

The federal Government decided on Tuesday to extend visas for homebuyers to three years instead of six months, triggering trading across the property sector.

Among the most heavily traded stocks, Emaar Properties added 2 per cent to Dh3.02, Arabtec increased 2.4 per cent to Dh1.28 and Deyaar Development rose 1.4 per cent to 29.1 fils.

More than 45 million shares in total were traded on these property stocks, making up almost half of all trading on the Dubai market.

Analysts said Dubai stood to benefit more than Abu Dhabi because it had more completed property ready to hand over.