Stocks in the United Arab Emirates declined on Friday, pressured by losses in crude prices as strong U.S. and German economic data sparked concerns that sticky inflation could prolong higher interest rates and curb fuel demand.
Oil prices - a key catalyst for Gulf's financial markets - drifted lower on Friday with Brent crude easing 0.74% to $80.76 a barrel by 1032 GMT.
Data on Thursday showed U.S. jobless claims dropped while S&P Global's Flash PMI survey showed business activity expanded faster than economists forecast in May.
Most Gulf Cooperation Council (GCC) countries, including the United Arab Emirates, have their currencies pegged to the U.S. dollar and they generally follow the Fed's policy moves.
Abu Dhabi's benchmark index (.FTFADGI), opens new tab dropped 0.6%, hitting their lowest level in over 27-months, dragged down by a 6.9% drop in state-run utility firm Abu Dhabi Nation Energy Company (TAQA.AD), opens new tab, while Abu Dhabi healthcare platform Pure Health Holding (PUREHEALTH.AD), opens new tab shed 5.8%.
Meanwhile, crypto mining firm Phoenix Group (PHX.AD), opens new tab gained 4.8%, recovering from six straight sessions of losses that took it below the listing price.
However, Palms Sports (PALMS.AD), opens new tab jumped 2.6% after the firm acquired an 80% Stake In Yas Physiotherapy Center.
Dubai's main index (.DFMGI), opens new tab settled 0.3% lower, and 1.4% down for the week, to its lowest level since late December last year as market heavyweight Emaar Properties (EMAR.DU), opens new tab and Emirates NBD Bank (ENBD.DU), opens new tab lost 1.6% each.
Abu Dhabi's index logged 2.3% losses, its steepest weekly decline since mid-October last year.
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