Abu Dhabi’s stock market ended higher on Friday amid rising oil prices, although the Dubai index snapped two sessions of gains to finish flat.
In Abu Dhabi, equities gained 0.6%, led by a 1.4% rise in the country’s biggest lender First Abu Dhabi Bank.
Crude prices, a key catalyst for the Gulf’s financial markets, rose as much as $1 as fresh U.S. data lowered recession fears, although an upcoming speech from the U.S. Federal Reserve chairman capped further gains.
The United Arab Emirates is aligned with Saudi Arabia’s thinking on crude oil markets, Reuters reported on Friday, citing a source with knowledge of the matter.
On Monday OPEC’s de facto leader Saudi Arabia flagged the possibility of introducing production cuts to balance the oil market.
The Abu Dhabi bourse saw a positive performance with oil prices changing course, said Fadi Reyad, Market Analyst at CAPEX.com.
Dubai’s main share index posted its third weekly gain of 1.3%, although it closed flat, as gains in financials were offset by declines in property shares.
Emirates NBD Bank gained 1.5%, while Emaar Properties retreated 1.8%.
The blue-chip developer on Wednesday jumped 4%, on its plans to increase the foreign ownership limit.
Shareholders are to also vote on Sept. 21 on the acquisition of certain assets of Dubai Holding for a mandatory convertible bond of 3.75 billion dirhams ($1.02 billion).
=============================== ABU DHABI up 0.6% to 10,079 DUBAI was flat at 3,463 ===============================