Oil’s rally gives lift to UAE shares

Shares in the UAE ended the week on a positive note on Thursday as international funds returned to market following a recovery in oil prices.

Shares in the UAE ended the week on a positive note yesterday, as international funds returned to market following a recovery in oil prices.

Brent crude extended gains after breaking through the US$50 a barrel mark on Wednesday evening, trading at around $50.80 in the late afternoon.

Yesterday the Share Index in Abu Dhabi closed up by nearly 0.6 per cent, at 4,608.28, as Western investors returned to big names including Etisalat and First Abu Dhabi Bank.

“Western accounts are quite stock specific, so UAE indices have been supported by heavyweight names like Etisalat and Emaar, even though more broadly a lot of the smaller and mid-cap names are in negative territory,” said Julian Bruce, EFG Hermes’ head of institutional trading in Dubai.

Agthia led losses, down 4 per cent at Dh5.95 after reporting a 22 per cent fall in quarterly profits.

Shares in Abu Dhabi National Energy, known as Taqa, had their best day in more than a month, after the company reported its first quarterly profit in two years. The shares closed up 12.5 per cent at 63 fils.

Fellow energy company Dana Gas, which also reported an increase in profit for the quarter, closed up by 2.3 per cent at 44 fils. Waha Capital closed down by 0.6 fils at Dh1.82, after posting a 50 per cent drop in quarterly profits.

The Dubai Financial Market General Index closed up just over 0.7 per cent at 3,420.19, thanks to gains by DIB and Emaar Properties. Shares in Marka meanwhile extended losses, after the retail investment company reported deepening losses for the first quarter. Its shares closed 4.2 per cent lower at 95.8 fils, taking losses for the week to 27.4 per cent.

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