Shares in Abu Dhabi-listed Dana Gas jump 9.5 percent to 0.92 dirham in early, unusually heavy trade

Company's board said it will seek shareholder approval for 2017 cash dividend of 5 percent of capital; did not pay dividend for 2016

Not clear how decision to pay dividend may affect dispute between Dana and holders of its $700 million of sukuk, who are fighting company's refusal to redeem the sukuk on maturity

Stock rises above September 2017 peak of 0.85 dirham; next technical resistance on January 2014 peak of 1.04 dirhams

Abu Dhabi stock index edges down 0.2 percent

(Reporting by Andrew Torchia) ((andrew.torchia@thomsonreuters.com)(+9715 6681 7277)(Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))