Friday, 2 February 2024

Mideast Stocks: #Dubai up ahead of US employment data, #AbuDhabi falls

Mideast Stocks: Dubai up ahead of US employment data, Abu Dhabi falls

The Dubai stock exchange closed higher on Friday, ahead of crucial U.S. employment data that could hasten bets for rate cuts, while Abu Dhabi's index fell.

Economists polled by Reuters estimated the U.S. economy added 180,000 new jobs last month after creating 216,000 in December. The employment data is due at 1330 GMT.

Most Gulf Cooperation Council countries, including the United Arab Emirates (UAE), peg their currencies to the U.S. dollar and follow the Fed's policy moves closely. Oil prices, a key contributor to Gulf's economy, rebounded on Friday after the OPEC+ group decided to keep production policy unchanged. Brent crude was up 0.60% to $79.17 a barrel by 1058 GMT.

Dubai's main index gained 0.2%, helped by a 3.4% jump in Emirates Central Cooling Systems Corporation, while Dubai's top lender Emirates NBD Bank increased 1.4%. Among the gainers, Investment bank Shuaa Capital surged 14.7%, its biggest intraday rise since late March 2019, after the firm denied rumours regarding delisting from the Dubai Financial Market.

The Dubai index notched up 1.6% on a weekly basis, while Abu Dhabi's index logged 1.2% weekly losses according to LSEG data.

However, Abu Dhabi's benchmark index edged 0.1% lower, extending losses to straight seventh session, dragged down by a 1.4% slump in IHC-owned investment firm Multiply Group and a 1.2% decline in UAE's third-largest lender Abu Dhabi Commercial Bank.

The losses in the index were stemmed by a 2.9% jump in petrochemical firm Borouge as the firm reported better than expected Q4 earnings on Thursday. The firm posted a 16% growth in Q4 net profit to $288 million that beat $225.4 million Q4 estimates.

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