Abu Dhabi index closed higher on Friday, in line with oil prices after new sanctions were imposed on Iran’s crude exports, while Dubai index bucked the trend.
Oil prices – a key catalyst for Gulf’s financial market – drifted nearly 1% higher as the U.S. Treasury said on Thursday it was imposing new sanctions on individuals and tankers helping to ship millions of barrels of Iranian crude oil per year to China, in an incremental move to increase pressure on Tehran.
Brent crude was up 0.9% to $74.96 a barrel by 1105 GMT.
Abu Dhabi’s benchmark index (.FTFADGI) rebounded on Friday with the index gaining 0.2% as the majority of stocks were trading in green territory.
Adnoc Gas (ADNOCGAS.AD) climbed 2% and biggest developer Aldar Properties (ALDAR.AD) jumped 1.7% ahead of its earnings on Monday.
Adnoc Gas reported $5 billion in full-year profit, up 13% year-on-year and hiked annual dividend by 5%.
Among the gainers, Sharjah-based Dana Gas (DANA.AD) rose 0.5%, after the firm posted 15% growth in fourth-quarter net profit to 143 million dirhams ($38.94 million) and indicated it would resume a dividend payout.
Separately, France and the United Arab Emirates agreed on Thursday to a framework accord for a 1 gigawatt data centre dedicated to artificial intelligence, representing investments of between $30-$50 billion, the French presidency said.
However, Dubai’s main index (.DFMGI) retreated 0.1%, dragged down by a 1.1% decline in Dubai Islamic Bank (DISB.DU) and a 1% loss in toll operator Salik Company (SALIK.DU).
Dubai index recorded 1.1% gain on weekly basis, while Abu Dhabi closed flat, according to LSEG data.
Abu Dhabi recovered following Thursday’s decline, continuing its seesaw movement throughout the week without clear direction, said Joseph Dahrieh, Managing Principal at Tickmill. “The market will see additional earnings releases next week, which will likely influence its next directional move.”
($1 = 3.6726 UAE dirham)
Source: Reuters.com