Dubai’s index ended lower on Friday, with banking and industrial stocks driving losses as rising geopolitical tensions dampened market sentiment, while the Abu Dhabi index closed almost flat.
Regional geopolitical tensions have escalated this week, after Israel resumed airstrikes and ground operations in Gaza, effectively ending a two-month-old ceasefire.
Dubai’s main index declined 0.6%, hitting a near-three-month low, dragged lower by a 4% drop in Dubai Islamic Bank and a 9.8% fall in Gulf Navigation Holding. Outperforming the broader market, Emirates Integrated Telecommunications Co, (Du), rose 0.9% after Bloomberg News reported that Abu Dhabi’s Mubadala Investment Company could sell at least part of its $1 billion stake in the firm.
Dubai’s index broke through its support level, which had held for the past two weeks, as recent negative sentiment surrounding global markets has weighed on stock market performance, Rania Gule, Senior Market Analyst at XS.com – MENA, said.
However, fundamentals are still supportive, she said. Dubai and Abu Dhabi extended losses to a fifth straight week, registering declines of 0.8% and 0.5% respectively, according to LSEG data.
Abu Dhabi’s benchmark index closed almost flat, up 0.004%, supported by a 1% rise in Emirates Telecommunications Group (E&), and a 1.7% increase in shares of First Abu Dhabi Bank, the biggest lender by assets. Agthia Group, which appointed Salmeen Obaid Al Ameri as new MD and CEO on Friday, gained 0.9%.
Oil prices – a key catalyst for the Gulf region’s financial markets – fell slightly on Friday but were heading for a second consecutive weekly gain as fresh U.S. sanctions on Iran and the OPEC+ output plan raised expectations of tighter supply. Brent crude was down 0.5% to $71.64 a barrel by 1135 GMT.
- ABU DHABI up 0.004% to 9,368 points
- DUBAI down 0.6% to 5,100 points
(Reporting by Mohd Edrees in Bengaluru; Editing by Rachna Uppal)
