Stock markets in the United Arab Emirates (UAE) rebounded on Friday, as oil prices touched seven-year highs on fears of supply disruptions.
Brent crude rose $1.32, or 1.5%, to $92.43 a barrel by 1120 GMT, having touched its highest since October 2014 at $92.66 earlier in the session..
The Dubai stock index gained 0.6%, recovering from losses in the previous session, supported by its financial stocks, as Commercial Bank Of Dubai jumped 8.4% and its largest lender, Emirates NBD Bank, gained 0.8%. The index was down 1.5% for the week.
The index trimmed its weekly losses but continues to trade sideways on the broader picture in the absence of strong catalysts, said Wael Makarem, Senior Market Strategist, MENA, at Exness.
The UAE said on Monday it would introduce a federal corporate tax on business profits for the first time starting June 1, 2023, although it kept the rate low, at 9%, to maintain its attractiveness for businesses.
"While the introduction of the new profit tax does not seem to be a source of concern for now," Makarem said.
Most major Gulf bourses track oil prices lower
In Abu Dhabi, shares edged up 0.1%, led by a 1.2% gain in real estate developer Aldar Properties and a 13.3% surge in National Bank of Ras Al Khaimah, after reporting full-year net profit rose more than 33% to 756.1 million dirhams ($205.88 million).
Aldar Properties said on Thursday it planned to invest 1 billion dirhams ($272.29 million) in Aldar Education, its wholly owned subsidiary, and the largest premium school operator in Abu Dhabi. Abu Dhabi index also fell 0.4% for the week.
Markets in the UAE shifted to a new Monday-to-Friday working week from the start of 2022 to better align with global markets.
ABU DHABI rose 0.1% to 8,733 points
DUBAI gained 0.6% to 3,171 points
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