BENGALURU: The oil price surge following the EU’s imposition of more sanctions on Russia helped the Abu Dhabi index end higher on Friday, but investors booked profits on the gains of the previous five sessions, causing the Dubai index to fall. The benchmark index for Abu Dhabi saw increases for the fourth session, ending the day 0.2 percent higher. The largest lender in the country, First Abu Dhabi Bank, climbed 0.5 percent, while Emirates Telecom Group saw a 1.7 percent increase.
After hitting its highest level in 17 and a half years the previous session, Dubai’s main index dropped 0.2 percent, breaking a five-day gaining streak. A dip in banking sector equities was the main cause of losses; Commercial Bank of Dubai down 3.6 percent, while Dubai’s largest lender, Emirates NBD Bank, fell 2.4 percent following three straight session advances. However, when Air Arabia Abu Dhabi revealed intentions to expand its operating capacity by 40% in 2025, low-cost carrier Air Arabia increased by 0.8 percent, maintaining its upward trajectory.
Although there was profit-taking on Friday, the Dubai index reached a significant resistance level after a strong climb last week. Ahmed Negm, head of market research MENA at XS.com, stated that the company’s profits next week may provide the impetus required to overcome this obstacle. According to LSEG statistics, Dubai’s index increased 4.1 percent and Abu Dhabi’s increased 2 percent during their fourth week of increases. Although global events continue to affect investor confidence, markets are nevertheless stable due to stable oil prices and strong corporate profitability, Negm added.
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