UAE and Saudi stock markets demonstrated a strong recovery, with key indices in Dubai and Abu Dhabi showing positive gains. This resurgence follows earlier wobbles, buoyed by higher Asian market openings and a significant increase in oil prices, signaling renewed investor confidence in the region.
Market Rebound
Stock markets in the UAE and Saudi Arabia experienced a robust comeback, with the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX) joining the Saudi Tadawul in a solid recovery. By 11:35 AM local time, the general indexes in Dubai and Abu Dhabi were up by 0.7% and 0.2% respectively. This positive trend was anticipated after Asian markets opened higher, and was further fueled by a 10% increase in oil prices, which is expected to positively impact the economies of GCC nations.
Key Stock Performances
Several prominent stocks showed significant gains:
- Emaar Development: Staged a smart 2% recovery after a dip following recent geopolitical tensions.
- Union Properties: Rose by 2.8%.
- DEWA: Increased by 0.7%.
- Emirates NBD: Saw a 0.4% gain.
- ADNOC Gas and ADNOC L&S: Both traded higher, supported by news of ADNOC’s investment platform XRG bidding to acquire Australian energy firm Santos.
Saudi Tadawul’s Performance
The Saudi Tadawul general index surpassed the 1% gain mark by 11:45 AM, reflecting the broader positive sentiment across the region’s markets.
Oil Market Outlook
Despite recent geopolitical events, the oil market has shown resilience. Christian Gattiker, Head of Research at Julius Baer, noted that oil’s reaction has been less emotional than expected, with prices trading around $75 a barrel. He emphasized the market’s resilience, ample storage, plentiful spare capacity, and growing exports outside the Middle East. Gattiker maintains a ‘neutral’ view, expecting prices to rise temporarily before returning to previous levels, having adjusted near-term targets to account for a temporary risk premium.
Key Takeaways
- UAE and Saudi stock markets show strong recovery, with DFM and ADX up 0.7% and 0.2% respectively.
- Emaar Development and Union Properties lead gains among key UAE stocks.
- Saudi Tadawul index surpasses 1% gain.
- Oil market remains resilient, with prices around $75 a barrel, despite geopolitical events.
- Market analysts attribute the comeback to positive Asian market openings and a 10% rise in oil prices.
Sources
- UAE, Saudi stock markets in comeback mood, Gulf News.
