Stock markets in the United Arab Emirates advanced on Friday, tracking rising crude prices, as investors awaited an OPEC+ decision on supply agreements for the second quarter.
Increasing possibilities of the Saudi-led OPEC+ extending its supply cuts beyond the first quarter, possibly until the end of 2024, is expected to maintain oil prices at or above $80 per barrel.
Oil price - a key contributor to the Gulf’s economies - surged 1.18% to $82.88 a barrel by 1052 GMT.
Dubai’s main index advanced 1.1%, reaching a more than 9-year high, buoyed by a 2.1% increase in blue-chip eveloper Emaar Properties and a 4.6% surge in business park operator Tecom Group.
On Thursday, Dubai developer Emaar Properties launched two new projects, The Heights Country Club in Dubai and Grand Club Resort, with a development value of 96 billion dirhams ($26.14 billion).
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However, Dubai’s largest lender, Emirates NBD Bank slipped 5.7%, which capped the gains in the index.
Dubai index notched up 3.1% on a weekly basis, its highest weekly gain since last November, according to LSEG data.
Abu Dhabi’s benchmark index rose 0.3%, helped by a 2.6% rise in IHC-owned investment firm Multiply Group and a 2.9% increase in Adnoc Distribution.
Among the gainers, Petrochemical maker Borouge jumped 2.9% after UAE’s ADNOC closed the acquisition of a 24.9% stake in Austria’s OMV.
Last July, ADNOC entered into talks to merge petrochemicals group Borealis - owned by OMV and ADNOC - and Abu Dhabi-listed Borouge, owned by ADNOC and Borealis.
“Abu Dhabi market could rebound if geopolitical conditions improve and oil prices climb above their January peak,” said George Khoury, Global Head of Education and Research at CFI.
================================= ABU DHABI up 0.3% to 9,279 DUBAI rose 1.1% to 4,357 =================================
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