UAE stock prices edge up, but geopolitical tensions cap the gains
The stock markets of the United Arab Emirates ended a little higher on Friday as investors remained cautious due to the lack of progress made in diplomatic talks between Iran and 'the United States.
The conflict has reached a deadlock. A ceasefire has been implemented since April 8 but tensions are still high. Iran continues to blockade the Strait of Hormuz as retaliation against a U.S. naval blockade of their vital oil exports.
A U.S. official said that Donald Trump was scheduled to be briefed on Thursday about plans for a "series of new military strikes" to force Iran to negotiate a peaceful end to the conflict.
Abu Dhabi's benchmark indices gained?0.1%. This was mainly due to a?rise of 4.1% in Adnoc Drilling, and a 0.9% rise in Aldar Properties.
The index closed in the black, thanks to gains in consumer discretionary and financial stocks.
Mashreqbank rose 5.6% after the lender reported an increase of 7% in its net profit for the first quarter to 1.88 billion dirhams (511.95 million dollars).
Joseph Dahrieh said that the market in Dubai continues to?draw support from strong earnings. He added that geopolitical tensions could increase pressure on the market, but local fundamentals might?limit declines.
By 1146 GMT, oil prices had risen 0.5% to $110.94 per barrel.
According to LSEG data, the Dubai index registered a 1.5% drop, while 'Abu Dhabi closed level for the week.
(source: Reuters)
