Friday 31 May 2024

Mideast Stocks: #AbuDhabi index jumps ahead of OPEC+ meeting

Mideast Stocks: Abu Dhabi index jumps ahead of OPEC+ meeting

Stock markets in the United Arab Emirates closed higher on Friday, with the Abu Dhabi index leading gains ahead of an OPEC+ meeting two days later.

OPEC+ is working on a complex deal to be agreed at its meeting on Sunday that will allow the group to extend some of its deep oil production cuts into 2025, three sources familiar with OPEC+ discussions said on Thursday.

Abu Dhabi's benchmark index advanced 1.3%, rebounding to a second session after hitting a 28-month low on May 29, boosted by a 1.9% surge in UAE's largest listed firm International Holding Company, and a 3.9% jump in Emirates Telecommunication Group. Abu Dhabi index notched up 0.3% after two weeks of losses, and logged 2.3% of monthly decline, according to LSEG data. However, Brent crude - the key contributor to the Gulf's economy - was trading 0.04% lower at $81.83 a barrel by 1156 GMT.

Among the gainers, Abu Dhabi's flagship shipping firm Abu Dhabi Ports Company gained 1.8% after the firm signed an MoU with Madagascar's Economic Development Board to explore the development of economic cities & free zones, ports, marina and cruise port facilities.

Dubai's main index settled 0.2% higher, lifted by industrial and real estate gains, rebounding for the second session after touching a nearly 6-month low. Among the winners, toll gate operator Salik Company increased 3.1% and business park operator Tecom Group rose 1.5%.

Dubai index recorded 4.3% losses, its highest monthly decline since Oct. last year, while it fell 0.9% on a weekly basis, according to LSEG data. Stock markets in the UAE rebounded to a certain extent after a long period of price corrections, said Joseph Dahrieh, Managing Principal at Tickmill.

According to Joseph, "Both markets could remain exposed to downside risks while investors continue to monitor geopolitical risks, oil markets, and changing expectations regarding monetary policy in the US".

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