Abu Dhabi retreats from record highs tracking oil prices; Dubai rebounds
Aug 12 (Reuters) - Abu Dhabi index closed lower on Friday, slipping off its record highs in line with oil prices as weak corporate earning sapped investors' appetite, while the Dubai index bucked the trend.
Crude prices, a key catalyst for the Gulf's financial markets, fell more than $1 to $98.26 on Friday as Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for growth in world oil demand in 2022 by 260,000 barrels per day (bpd).
The Abu Dhabi index (.FTFADGI) closed 0.6% lower, snapping its 5-day gaining streak as conglomerate International Holding Company (IHC.AD) dropped 1.4% and Emirate's largest lender First Abu Dhabi Bank (FAB.AD) decreased 0.8%.
Among other stocks, Julphar (JULPHAR.AD) declined 3.7% after the Gulf pharma firm's second-quarter net profit dropped over 90% to 4.8 million dirham ($1.31 million).
Abu Dhabi index recorded a weekly gain of 3.3%, according to Refinitiv data.
Dubai's main share index (.DFMGI) rose 0.3%, supported by a 0.7% gain in Sharia-compliant lender Dubai Islamic Bank (DISB.DU), while low cost carrier Air Arabia (AIRA.DU) jumped 2.3%, a day after its second-quarter net profit soared 16-fold to 160 million dirham ($43.56 million) from a year ago.
However, Dubai's blue-chip developer Emaar Properties (EMAR.DU) slipped 1.6% as the firm reached a deal with Dubai Holding to buy its stake in their Dubai Creek Harbour joint venture for 7.5 billion dirhams ($2.04 billion). read more
The Dubai stock market was volatile after the publication of mixed earnings results. The market could however see additional increases after some price corrections, said Daniel Takieddine, CEO MENA BDSwiss.
($1 = 3.6727 UAE dirham)