| 1 October 2023, Sunday |

UAE shares jump on possible rail, port deal

Stock markets in the United Arab Emirates rose on Friday, after Reuters reported that the United States, Saudi Arabia, India and other nations are discussing a possible rail and port deal.

The infrastructure deal talks, which have also included the United Arab Emirates (UAE), could reconfigure trade between the Gulf and South Asia, linking Middle Eastern countries by railways and connecting to India by port, according to U.S. officials aware of the conversations.

Abu Dhabi’s benchmark index settled 0.3% higher, bolstered by gains in real estate and banking stocks, including National Marine Dredging Company, which added 3.9%, while real estate giant Aldar Properties increased 0.6%.

UAE’s largest lender, First Abu Dhabi Bank, gained 1.1%.

After a month of price corrections, the Abu Dhabi market could rebound if traders continue to buy the dips and a rebound in oil prices could provide a boost to investor sentiment, said Hani Abuagla, Senior Market Analyst at XTB MENA.

Oil prices, a key catalyst for the Gulf’s financial market, rebounded from the previous session’s fall, as investors weighed fears about the health of China’s economy against supply cuts from major producers Saudi Arabia and Russia.

Brent crude futures were up 0.71% or 64 cents to $90.56 a barrel by 1136 GMT.

Dubai’s main index closed 0.2 higher, elevated by a 0.9% rise in top lender Emirates NBD Bank and a 1.2% jump in state-run Dubai Electricity And Water Authority.

Among the stocks, Islamic lender Mashreqbank advanced 3%.

The Abu Dhabi and Dubai indexes posted weekly losses of 1% and 0.55% respectively, according to LSEG data.

(.FTFADGI) up 0.3% to 9,691
(.DFMGI) up 0.2% to 4,067

  • Reuters