UAE stocks edge up; geopolitical tensions cap gains

Kitco Media
By Reuters
Published:
Updated:
Reuters
UAE stocks edge up; geopolitical tensions cap gains teaser image

May 1 (Reuters) - Stock markets in the United Arab Emirates closed slightly higher on Friday, as investors remained cautious amid a ​lack of progress in diplomatic talks between Iran and ‌the United States.

Efforts to resolve the conflict have reached a standstill. Although a ceasefire has been in effect since April 8, tensions remain ​high as Iran continues to block the Strait of ​Hormuz in retaliation for a U.S. naval blockade of ⁠its vital oil exports.

U.S. President Donald Trump was scheduled to ​receive a briefing on Thursday on plans for a series of ​fresh military strikes to compel Iran to negotiate an end to the conflict, a U.S. official told Reuters.

Abu Dhabi's benchmark index (.FTFADGI), gained 0.1%, supported ​by a 4.1% rise in Adnoc Drilling (ADNOCDRILL.AD), and a 0.9% ​increase in real estate giant Aldar Properties (ALDAR.AD).

Gains in the financial and consumer ‌discretionary ⁠stocks helped Dubai's main market (.DFMGI), to close in the green, with the index adding 0.01%.

Mashreqbank (MASB.DU),  jumped 5.6% after the lender reported 7% growth in its first-quarter net profit to 1.88 billion dirhams ($511.95 ​million).

Dubai's market continues ​to draw ⁠support from solid earnings, said Joseph Dahrieh, managing director at Tickmill, adding that any geopolitical escalation ​could add more pressure, though strong local fundamentals ​may ⁠help limit declines.

Oil prices - a key catalyst for the Gulf's financial market - were up 0.5% at $110.94 a barrel by 1146 GMT.

The ⁠Dubai index ​logged a 1.5% decline, while Abu ​Dhabi closed flat for the week, according to data compiled by LSEG.

($1 = 3.6722 ​UAE dirhams)

Reporting by Mohd Edrees in Bengaluru; Editing by Maju Samuel

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