UAE Stock Market Surges with Increased Oil Prices
Stocks in the United Arab Emirates exhibited a positive trend in Friday's session, driven by the surge in oil prices. Investors remained vigilant due to concerns about the potential escalation of the conflict between Israel and Gaza.
UAE Stocks Display Resilience Amidst Geopolitical Tensions and an Oil Price Surge
On Friday, the United Arab Emirates (UAE) stock market demonstrated a strong performance, exhibiting a positive reaction to the increase in crude prices. Amid ongoing concerns regarding the potential escalation of the conflict between Israel and Gaza, this increase was noted.
Bolstered by the Oil Price Rally
Brent crude experienced a notable rebound on Friday, witnessing a 1.02 percent increase and reaching $78.38 per barrel by 13:02 GMT. The significant rise in oil prices had a cascading effect on the UAE stock market, influencing various sectors.
ADNOC-Linked Companies Lead the Gains
Companies associated with the Abu Dhabi National Oil Company (ADNOC) played a pivotal role in driving the gains. Notably, ADNOC Drilling and ADNOC Logistics & Services, both entities under the ADNOC umbrella, demonstrated resilience by closing with a 2.7 percent increase.
Other noteworthy gainers
Global Holding experienced a modest uptick of 0.2 percent, contributing to the overall positive sentiment in the market. Additionally, First Abu Dhabi Bank, the largest bank in the UAE, recorded a 0.3 percent rise, further reinforcing the positive trajectory.
Dubai's Market Performance
The benchmark index in Dubai exhibited a marginal increase of 0.2 percent as it concluded the session. Significant factors that contributed to this growth were Emirates Central Cooling Systems Corporation (Empower) experiencing a 1.7 percent increase and Dubai Islamic Bank witnessing a 0.4 percent rise.
Weekly Performance Insights
As the week came to a close, the Abu Dhabi and Dubai indexes posted gains of 0.9 percent and 0.7 percent, respectively. This positive weekly performance reflects the resilience of the UAE stock market amidst geopolitical uncertainties.
London Stock Exchange Data
Data sourced from the London Stock Exchange indicates that the first week of the year saw encouraging gains in both the Abu Dhabi and Dubai indexes, reinforcing investor confidence amid prevailing geopolitical tensions.
