Friday 8 November 2024

Lower oil prices drag #UAE markets down | Reuters

Lower oil prices drag UAE markets down | Reuters


Stock markets in the United Arab Emirates closed lower on Friday, driven by a drop in oil prices on subsiding risks of the significant impact of hurricane Rafael on U.S. oil and gas output.

Hurricane Rafael, which has caused 391,214 barrels per day of U.S. crude oil production to be shut, is expected to move slowly westward over the Gulf of Mexico and away from U.S. fields while forecast to weaken from Friday and through the weekend, the U.S. National Hurricane Center said.

Oil prices — an engine of growth for Gulf's economies — was down 1.61% at $74.41 a barrel as of 1100 GMT.

Abu Dhabi's benchmark index (.FTFADGI), opens new tab slipped 0.2%, after three session of gains, dragged down by a 0.6% decrease in International Holding Company (IHC.AD), opens new tab and a 1.4% decline in IHC-owned conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab.

Other losers included Sharjah-based energy firm Dana Gas (DANA.AD), opens new tab. It fell 1.3% after the firm recorded a 7% decline in its third-quarter net profit to $40 million.

However, State oil giant Abu Dhabi National Oil Company's gas unit, ADNOC Gas (ADNOCGAS.AD), opens new tab, jumped 1.5% ahead of releasing third-quarter earnings later in the day.

Dubai's main index (.DFMGI), opens new tab snapped three sessions of gains, with the index settling 0.1% down.

Among the losers, Dubai lenders Mashreqbank (MASB.DU), opens new tab and Commercial Bank of Dubai (CBD.DU), opens new tab dropped 2% and 4%, respectively.

Meanwhile, the UAE central bank cut its base rate applied to the overnight deposit facility by 25 basis points on Thursday, from 4.90% to 4.65%, effective Nov. 8.

The Abu Dhabi index recorded 1.1% weekly growth, while the Dubai index extended gains to fifth week, with a 0.4% rise, according to LSEG data.

No comments:

Post a Comment