Dubai index falls on weaker oil prices; Abu Dhabi flat

Dubai’s main share index ended lower on Friday, tracking weaker oil prices as supply concerns eased after more stranded oil tankers exited the Strait of Hormuz, while the Abu Dhabi index closed flat.

Crude shipments through the Strait rose this week to their highest level since the Middle East conflict began in February after a ceasefire deal reopened the waterway, data on Thursday showed.

Brent crude, a key catalyst for the Gulf’s financial market, was down 3.4% at $72.72 a barrel by 1110 GMT.

Dubai’s main market index slipped 0.1%, weighed by declines in utility and industrial stocks.

Emirates Central Cooling Systems Corporation fell 1.8%, while state-run Dubai Electricity and Water Authority declined 1.1%.

Diplomatic efforts have helped ease regional tensions, but investors remain focused on geopolitical developments. A recent incident involving shipping in the Strait of Hormuz could inject some caution into sentiment amid ongoing U.S.-Iran diplomatic talks, said Samer Hasn, senior market analyst at XS.com.

However, Abu Dhabi’s benchmark index settled 0.04% up despite trading in negative territory for most of the session, supported by a 2.3% jump in real estate giant Aldar Properties and a 1.9% rise in Abu Dhabi Islamic Bank.

Aldar Properties announced it had sold out Orchids at Yas Acres at the launch, generating more than AED 680 million ($185.15 million).

Dubai’s index fell 2.4%, recording its first weekly decline in more than a month, while Abu Dhabi’s index posted a 1.4% weekly loss, according to LSEG data.

Separately, Saudi Aramco resumed crude loadings on Friday at its Ras Tanura terminal in the Gulf after a near four-month halt, shipping data showed, as the world’s biggest oil exporter joined a rush to move cargoes amid industry hopes of a return to normal.