UAE markets rebound; E& surges on Vodafone stake sale

Stock markets in the United Arab Emirates closed higher on Friday, tracking gains in global equities, as investors recovered from two sessions of losses fuelled by renewed hostilities between the United States and Iran.

In global markets, Japan’s Nikkei rose 1.2% and South Korea’s KOSPI leaped 2.5%, while pan-European STOXX 600 was up 0.1% GLOB/MKTS

Dubai’s main share index jumped 0.9%, supported by gains in financial and industrial stocks.

Dubai Islamic Bank gained 3.1%, while top lender Emirates NBD Bank added 1.4%.

Among the gainers, Taaleem Holding climbed 3.5% after reporting a 21% rise in third-quarter net profit to 105.6 million dirhams ($28.75 million).

Separately, Emirates Global Aluminium said on Friday that its Al Taweelah alumina refinery in Abu Dhabi has restarted producing the feedstock for aluminium smelting and would ramp up to 50% capacity within days.

Abu Dhabi’s benchmark index settled 0.5% up, led by a 5.3% surge in telecom operator E& Group and a 0.8% gain in energy shipping firm Adnoc L&S.

E& recorded its highest intra-day gain in over three-and-a-half years after announcing it would sell its entire stake in Vodafone to the investment vehicle of French billionaire Xavier Niel’s family in a $5.95 billion deal.

The deal prices Vodafone shares at 112.5 pence, a 15% premium to their last close of 97.76 pence, and will result in a net cash return of about $1.3 billion, the company said.

Oil prices, a key driver for Gulf economies, were up 0.7% at $76.86 a barrel by 1136 GMT.