Dubai Index Leads Global Share Rally

08 Oct, 2023

Dubai Index Leads Global Share Rally

Dubai's stock index closed in positive territory on Friday, mirroring the global equities' optimism driven by expectations of a potentially muted US payrolls report later in the day. However, Abu Dhabi's shares went against the trend.

MSCI's All-Country stock index registered a 0.2% increase, while in Europe, the STOXX 600 index rose by 0.7%. Analysts anticipated a moderate slowdown in US job growth for September, forecasting a gain of 170,000 jobs, compared to the 187,000 added in August.

Dubai's benchmark index saw a 0.5% jump, largely fueled by gains in the financial and utilities sectors. Emirates NBD Bank, Dubai's largest lender, advanced by 1.7%, and Emirates Central Cooling Systems Corporation gained 2.2%. One standout performer was BHM Capital Financial Services, which surged by 14.6% following EIH Financial Services' acquisition of a 66.97% stake in the company from Jordan Kuwait Bank.

In contrast, Abu Dhabi's main index dipped 0.1%, influenced by a 1.8% decline in both Emirates Telecommunications Group and state-run Adnoc Gas.

Meanwhile, Brent crude inched up by 0.1%, or $0.12, to reach $84.19 per barrel by 1154 GMT.

In separate news, Abu Dhabi National Oil Company (ADNOC) announced it had awarded contracts worth approximately $16.94 billion for a groundbreaking gas project designed to operate with net-zero carbon dioxide emissions, making it the first of its kind globally.

Hani Abuagla, Senior Market Analyst at XTB MENA, cautioned that Abu Dhabi's index might experience further price corrections if oil prices continued to decline.