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