UAE shares decline on weak earnings and regional tensions

Stock markets in the United Arab Emirates declined on Friday as soft corporate earnings and increasing regional tensions dampened investor sentiment.

Yemen’s Houthis attacked Saudi oil facilities and airports, while tankers were reportedly hit in the Strait of Hormuz.

The US military’s senior officer overseeing the Middle East met US President Donald Trump at the White House on Thursday to outline military options in Iran, the Wall Street Journal reported on Thursday, citing US officials and other people with direct knowledge of the meeting.

Dubai’s main index dropped 0.8%, extending losses to a third session, pressured by losses in heavyweight real estate and financial sector stocks.

Dubai’s top lender Emirates NBD Bank lost 1.1%, while blue-chip developer Emaar Properties decreased 0.9%.

Among losers, Dubai Financial Market, the bourse operator, declined 1.6% after the firm reported a 4.3% decline in third-quarter net profit and 4.1% in total income.

Separately, DIP Holding, owned by Dubai Investments, is expected to price its IPO at per share below the top end of its indicative price range, book runner said in a statement.

Abu Dhabi’s benchmark index edged down 0.1%, pulled down by a 3.9% dip in Abu Dhabi Islamic Bank and a 1.3% fall in Abu Dhabi National Oil Company for Distribution.

IHC-owned Two Point Zero Group declined 2.5% after its third-quarter net profit dropped 25% to 1.51 billion dirhams ($411.15 million).

Oil prices - a key component of the Gulf’s economy - jumped on Friday as traders braced for a potential escalation in the US-Iran conflict after US midterm elections.

Brent crude was up 2.3% at $117.56 a barrel by 1150 GMT.

Abu Dhabi’s index recorded a 1.3% weekly loss, while Dubai gained 0.6% in the week, according to data compiled by LSEG.