UAE stocks rebound as supply fears push oil prices higher

A trader looks at screens at the Bahrain Stock Exchange in Manama, Bahrain, February 7, 2018. REUTERS/Hamad I Mohammed

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Feb 4 (Reuters) – Stock markets in the United Arab Emirates (UAE) rebounded on Friday as oil prices hit seven-year highs on fears of supply disruptions.

Brent rose $1.32, or 1.5%, to $92.43 a barrel at 11:20 GMT, after touching its highest level since October 2014 at $92.66 earlier in the session . .

The Dubai stock market index (.DFMGI) gained 0.6%, recovering from the previous session’s losses, supported by its financial stocks, as the Commercial Bank Of Dubai jumped 8.4% and its largest lender, Emirates NBD Bank (ENBD.DU), gained 0.8. %. The index fell 1.5% over the week.

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The index has pared its weekly losses but continues to trade sideways in the absence of strong catalysts, said Wael Makarem, senior market strategist, MENA, at Exness.

The United Arab Emirates announced on Monday that it will introduce a federal tax on corporate profits for the first time from June 1, 2023, although it has kept the rate low, at 9%, to maintain its attractiveness to foreigners. businesses. Read more

“While the introduction of the new profit tax does not seem to be a cause for concern at the moment,” Makarem said.

In Abu Dhabi, shares (.FTFADGI) edged up 0.1%, led by a 1.2% gain in property developer Aldar Properties (ALDAR.AD) and a 13.3% rise in National Bank of Ras Al Khaimah (RAKBANK.AD), after net profit for the full year rose more than 33% to 756.1 million dirhams ($205.88 million).

Aldar Properties on Thursday announced plans to invest 1 billion dirhams ($272.29 million) in Aldar Education, its wholly-owned subsidiary and Abu Dhabi’s largest premium school operator. The Abu Dhabi index also fell 0.4% over the week.

UAE markets have moved to a new Monday-Friday working week from the start of 2022 to better align with global markets.

($1 = 3.6726 UAE dirhams)

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Reporting by Shamsuddin Mohd in Bengaluru; Editing by Vinay Dwivedi

Our standards: The Thomson Reuters Trust Principles.

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