Abu Dhabi bourse settled higher on Friday after flagship oil firm Abu Dhabi National co, also known as Adnoc, announced an Initial Public Offering for its gas business, while Dubai index closed weaker.
Despite crude prices crashing more than 2%, the Abu Dhabi benchmark index advanced as the announcement of Adnoc Gas IPO bolstered risk-on mood.
Among gainers, state-controlled integrated utility firm Abu Dhabi National Energy Company (TAQA) surged 4.6% after the firm received 5% stake in Adnoc’s gas business ahead of its IPO.
ADNOC will sell 4% of its gas business in an IPO with ADX listing planned for March 13.
Oil prices declined on Friday on concerns of a higher rate hike by the U.S. Federal Reserve to cool inflation, with Brent crude down $2.28, or 2.68%, to $82.86 a barrel by 1124 GMT.
Two Fed officials said on Thursday the U.S. central bank likely should have lifted interest rates more than it did early this month.
Dubai’s main index dropped 0.3%, snapping two sessions of gains with most sectors trading lower.
State-run utility firm Dubai Electricity And Water Authority slipped 1.6% and top lender Emirates NBD bank dipped 1.1%.
Farah Mourad, a senior market analyst of XTB MENA, said Dubai was volatile and could remain exposed to potential price corrections while sentiment deteriorated.
======================================= ABU DHABI up 0.1% to 9,886 DUBAI <.DFMGI down 0.3% to 3,458 =======================================
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