Stock markets in the United Arab Emirates closed higher on Friday, mirroring gains in oil prices, with Dubai’s index leading the advance, driven by a surge in the real estate and telecom sectors.
Oil prices - a key catalyst for the Gulf’s financial markets - rose on Friday as optimism surrounding trade talks supported the outlook for the global economy and oil demand, offsetting reports of a possible spike in oil supply from Venezuela.
There was increasing optimism of a trade agreement between the U.S. and the European Union after the U.S. and Japan secured a trade deal this week. Two European diplomats said the EU was moving towards a deal involving a baseline U.S. tariff of 15% on EU imports, plus possible exemptions.
Dubai’s main index extended its winning streak to a third session, climbing 0.6%, buoyed by a 2.6% rise in blue-chip developer Emaar Properties and a 1.3% gain in toll operator Salik Company.
Among other gainers, telecom operator Emirates Integrated Telecommunications (known as Du) gained 1% after reporting growth of 25% in its second-quarter net profit to 726.8 million dirhams ($197.89 million).
Most Gulf stocks rebound on earnings, US-Japan trade deal
Banks propelled Abu Dhabi’s benchmark index to close 0.4% higher. Abu Dhabi Commercial Bank, the UAE’s third-largest lender jumped 3.3%, while Bank of Sharjah surged 4.9%.
Easy Lease Motor Cycle Rental climbed 3.5% after the firm reported a more than fourfold increase in its second-quarter net profit, with quarterly revenue also rising 96% year-on-year.
Both indexes recorded a fifth week of gains, with Dubai ending 0.9% higher and Abu Dhabi adding 0.8%, according to LSEG data.
---------------------------------- ABU DHABI up 0.4% to 10,340 DUBAI rose 0.6% to 6,150----------------------------------