UAE, Saudi stock markets in comeback mood - Emaar, Union Properties up

On ADX, ADNOC entities also move higher on oil's gains

Last updated:
Manoj Nair, Business Editor
2 MIN READ
On DFM and ADX, the big names returned to form, with real estate and banking stocks making up for losses sustained late last week.
On DFM and ADX, the big names returned to form, with real estate and banking stocks making up for losses sustained late last week.
Gulf News

Dubai: The Dubai Financial Market and ADX joined the Saudi Tadawul and other Asian stock markets in making a solid recovery from the wobbles late last week. Key UAE stocks are all trading positive at 11:35am local time, with the general indexes in Dubai and Abu Dhabi both up, by 0.7% and 0.2%, respectively.

The Emaar Development share price, which had lost a bit of its shine after the outbreak of hostilities between Israel and Iran on Friday, staged a smart 2% recovery, while Union Properties is up 2.8%. DEWA and Emirates NBD are in the green, by 0.7% and 0.4%, at 11:15am.

“After Asian markets opened higher earlier today, it was assured that UAE and Saudi would start off positively,” said a market analyst. “Plus, GCC stock exchanges are also factoring in the 10% increase in oil prices and what this would mean for their respective economies.”

ADNOC Gas and ADNOC L&S are trading higher, and there is also the news of ADNOC's investment platform XRG making a bid to acquire Australian energy firm Santos.

The Saudi Tadawul general index pushed past the 1% gain mark by 11:45am.

What next for oil?

"So far, oil’s reaction looks less emotional than it could be, with prices trading around $75 (a barrel)," said Norbert Rucker, Head of Economics and Next Generation Research at Julius Baer.

"The oil market is indeed very resilient today, and supplies are unlikely to be at risk.

"Storage is ample, spare capacity plentiful, and exports are growing outside of the Middle East. Our best guess is that this latest conflict eruption will follow the usual pattern, with prices rising temporarily before returning to previous levels.

"We maintain our 'neutral' view and lifted our near-term targets late last week to account for a temporary risk premium in prices."

Manoj Nair
Manoj NairBusiness Editor
Manoj Nair, the Gulf News Business Editor, is an expert on property and gold in the UAE and wider region, and these days he is also keeping an eye on stocks as well. Manoj cares a lot for luxury brands and what make them tick, as well as keep close watch on whatever changes the retail industry goes through, whether on the grand scale or incremental. He’s been with Gulf News for 30 years, having started as a Business Reporter. When not into financial journalism, Manoj prefers to see as much of 1950s-1980s Bollywood movies. He reckons the combo is as exciting as it gets, though many will vehemently disagree.

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