Equities in the United Arab Emirates’ capital rose as investors await a meeting between OPEC and its allies on Sunday and ahead of a long holiday.
Abu Dhabi’s ADX General Index rose 0.2% as of 11:37 a.m. local time, while Dubai’s DFM Index slipped less than 0.1%. The volume of trade in both exchanges was lower than the 30-day average ahead of the four-day Eid holiday, which starts Monday.
The meeting is the latest sign that a bitter standoff between Saudi Arabia and the United Arab Emirates has been resolved. The UAE blocked earlier this month an OPEC+ deal that cartel leaders Russia and Saudi Arabia hashed out to increase output, demanding better terms for itself. Officials have said privately in recent days that a full meeting would only be called if a deal was in reach.
It would also put an end to a diplomatic spat that has unnerved oil traders. Brent crude fell 2.6% to $73.59 per barrel last week, the biggest weekly decline since May 21.
“We would expect to see some level of compromise to have been reached with regards to the UAE’s production baseline being increased,” said Fahd Iqbal, the head of Middle East research at Credit Suisse AG in Dubai.
Middle Eastern Markets:
- First Abu Dhabi Bank gains 0.5%, adding the most to the gauge’s increase
- Other stocks rising: Etisalat +0.4%, International Holding Co. +0.6%, Adnoc Distribution +0.6%
- NOTE: Abu Dhabi Commercial Bank is expected to deliver financial results Sunday
- Bahrain-based GFH Financial Group is reconsidering its decision to delist from Kuwait’s stock exchange
- Exchanges in Kuwait, Qatar, Saudi Arabia, Oman and Israel are closed for holidays
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