The equity markets in the UAE ended the trading week on a bullish note as the country’s capital, Dubai, beat its regional peers with the rise in oil prices by around 7 percent due to the increased tension in the Middle East and disruption in the shipping process.
The index in Dubai showed an impressive performance and rose 0.6 percent, thereby reversing two days’ losses. The appetite for stocks of the local investors was driven by the largest bank in Dubai, Emirates NBD Bank, which showed a gain of 4.2 percent. Furthermore, the company, Emirates Central Cooling Systems Corporation (Empower), also rose by 1.9 percent.
The positive momentum reflected wider energy market fears as persistent security threats along vital Middle East maritime corridors restricted crude transport. Vessel traffic through the Strait of Hormuz dropped to just seven transits on Thursday, falling significantly below the 10-day average of 15. Additional trade security concerns emerged as Houthi forces seized control of Yemen’s port of Mocha, risking further disruption to crude shipments across the Red Sea corridor.
While Brent crude dipped 3.6 percent to $103.75 per barrel in international trading by 10:56 GMT, week-on-week energy price gains continued to support regional bourses. Neighbouring Abu Dhabi’s main index edged up 0.03 percent for its fourth straight winning session, ending the week 1.4 percent higher. Highlights in the capital included a 3.6 percent rise in IHC-owned Two Point Zero Group, a 2.9 percent gain for ADNOC Logistics & Services, and a 3.5 percent surge in NMDC Group.
However, further capital market growth was capped by a 5 percent decline in chemical manufacturer Fertiglobe and a 1.5 percent drop in First Abu Dhabi Bank. Meanwhile, National Central Cooling Company fell 2.1 percent following the executive appointment of new CEO Yousif Al Hammadi.
