UAE stocks gain on trade optimism and higher oil prices

Stock markets in the United Arab Emirates closed higher on Friday, mirroring gains in oil prices, with Dubai’s index leading the advance, driven by a surge in the real estate and telecom sectors.

Oil prices – a key catalyst for the Gulf’s financial markets – rose on Friday as optimism surrounding trade talks supported the outlook for the global economy and oil demand, offsetting reports of a possible spike in oil supply from Venezuela.

There was increasing optimism of a trade agreement between the U.S. and the European Union after the U.S. and Japan secured a trade deal this week. Two European diplomats said the EU was moving towards a deal involving a baseline U.S. tariff of 15% on EU imports, plus possible exemptions.

Dubai’s main index extended its winning streak to a third session, climbing 0.6%, buoyed by a 2.6% rise in blue-chip developer Emaar Properties and a 1.3% gain in toll operator Salik Company.

Among other gainers, telecom operator Emirates Integrated Telecommunications (known as Du) gained 1% after reporting growth of 25% in its second-quarter net profit to 726.8 million dirhams ($197.89 million).

Most Gulf stocks rebound on earnings, US-Japan trade deal

Banks propelled Abu Dhabi’s benchmark index to close 0.4% higher. Abu Dhabi Commercial Bank, the UAE’s third-largest lender jumped 3.3%, while Bank of Sharjah surged 4.9%.

Easy Lease Motor Cycle Rental climbed 3.5% after the firm reported a more than fourfold increase in its second-quarter net profit, with quarterly revenue also rising 96% year-on-year.

Both indexes recorded a fifth week of gains, with Dubai ending 0.9% higher and Abu Dhabi adding 0.8%, according to LSEG data.

———————————-

 ABU DHABI     up 0.4% to 10,340

 DUBAI         rose 0.6% to 6,150

———————————-