By Mohd Edrees
(Reuters) – Dubai’s index declined on Friday, driven by losses in heavyweight real estate sector stocks as U.S. President Donald Trump’s latest tariff threats made investors nervous, while Abu Dhabi bucked the trend to close higher.
In the latest in a long list of tariff threats, Trump said he would hit European beverage imports with duties of 200% if the EU does not remove U.S.
whiskey surcharges.
Dubai’s main index fell 0.9% after two sessions of gains, with blue-chip developer Emaar Properties and its construction arm Emaar Development falling 2.2% and 2.8% respectively.
Among the losers, Commercial Bank of Dubai slid 6.1% as the stock went ex-dividend.
However, Dubai Investments jumped 4.4% after the firm raised its full-year dividend by 44% to 18 fils a share.
Abu Dhabi’s benchmark index edged up 0.1%, supported by a 1.1% rise in largest lender First Abu Dhabi Bank and a 1.4% hike in Emirates Telecommunication Group (know as E& Group).
On Thursday, Gulf Cement received an offer from TC Mena Holdings to acquire up to 100% stake in the company at AED 0.56 per share.
Gulf cement stock closed 1.8% higher.
Oil prices – a key catalyst for Gulf’s financial market – rebounded on Friday due to the diminishing prospects of a quick end to the Ukraine war that could bring back more Russian energy supplies to Western markets.
Brent crude was up 1% at $70.57 a barrel by 1130 GMT.
[O/R]
Oil prices continue to play a crucial role in the potential ongoing recovery of the Abu Dhabi market, having reached and paused at key support levels, said Hani Abuagla Senior Market Analyst at XTB MENA.
He further said that any rebound in oil prices could provide positive momentum for the market.
Dubai and Abu Dhabi indexes recorded their fourth consecutive week of losses, declining 1.6% and 0.3% respectively, according to LSEG.
ABU DHABI up 0.1% to 9,419 points
DUBAI down 0.9% to 5,141 points
($1 = 3.6724 UAE dirham)
(Reporting by Mohd Edrees in Bengaluru; Editing by Maju Samuel)
