UAE stock markets ease as oil prices fall on COVID curbs in China

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Oct 28 (Reuters) – Stock markets in the United Arab Emirates ended lower on Friday as oil prices fell after major crude importer China widened its COVID-19 restrictions.

Oil, which is fueling growth in the region, fell to $96.46 a barrel at 1047 GMT, after climbing 1.3% in the previous session.

Friday’s declines came after Chinese cities stepped up COVID-19 restrictions on Thursday, sealing buildings and locking neighborhoods in a scramble to stop widening outbreaks.

In Abu Dhabi, the index (<.ftfadgi>) fell 0.1%, pressured by a 0.5% decline in the country’s largest lender, First Abu Dhabi Bank (), while Abu Dhabi Polymers Co Borouge () was down 1.4% after posting a more than 23% drop in net profit in the third quarter.

However, the index gained 5.5% this month, as it ended the week up 1.7% according to data from Refinitiv.

“Abu Dhabi’s stock market slowed after yesterday’s surge as traders scrambled to secure their gains. The market was also weighed down by mixed earnings from local companies,” said Farah Mourad, senior analyst at the market at XTB MENA.

The Dubai benchmark (<.dfmgi>) fell 0.5%, weighed down by its real estate values. Top-notch developer Emaar Properties () fell 1.5%.

The UAE’s main lender, Emirates NBD (), also fell 0.1% after jumping 1.1% on Thursday following strong quarterly results. Read more

The index recorded a monthly gain of 0.3% but ended the week down 1.5%.

Major stock markets elsewhere in the Gulf region were closed.

Reporting by Md Manzer Hussain & Shamsuddin Mohd in Bengaluru; Editing by Krishna Chandra Eluri

Our standards: The Thomson Reuters Trust Principles.

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