Most stock markets in the Gulf rose on Thursday as oil prices gained on growing fuel demand and a bigger-than-expected draw in U.S. crude inventories, although the Abu Dhabi index bucked the trend to trade lower.
The oil market was also supported by a return of appetite for risk assets as concerns eased over a potential default by property developer China Evergrande and its possible fallout on the world’s second-largest economy.
Dubai’s main share index added 0.2%, extending gains from the previous session, with blue-chip developer Emaar Properties rising 0.7% while DAMAC Properties advanced 2.4%.
The founder of DAMAC Properties is relaunching a partial offer to take the firm private after the securities regulator of the United Arab Emirates granted approval, according to a statement on Thursday.
The offer came amid years of downturn in Dubai’s property market, exacerbated by the economic fallout from the pandemic.
The United Arab Emirates’ Securities and Commodities Authority has signed an agreement with the Dubai World Trade Centre Authority (DWTCA) aimed at supporting the trading of crypto assets in DWTCA’s free zone, state news agency (WAM) reported on Wednesday.
In Abu Dhabi, the index eased 0.1% following a 0.7% drop in the country’s largest lender First Abu Dhabi Bank.
Global investors have been on tenterhooks in recent weeks as debt payment obligations of China Evergrande, labouring under a $305 billion mountain of debt, triggered fears its malaise could pose systemic risks to the world’s second-largest economy. Elsewhere, the Qatari index gained 0.4%, with petrochemical maker Industries Qatar rising over 1%.
DAMAC Properties rose 2.4%, while Emaar Properties rose 0.7%, and the main Dubai stock index gained 0.2%. “First Abu Dhabi Bank” shares dropped 0.7%, which negatively impacted the Abu Dhabi index.
On the other hand, The Abu Dhabi index fell 0.1 percent as the shares of First Abu Dhabi Bank, the country’s largest bank, fell 0.7 percent.
On Wednesday, The Gulf stock exchanges rose, except the general index of the Saudi stock market “TASI,” which fell by 0.4%, losing 45.24 points, to close at 11270.57 points. While the general index of the Abu Dhabi Stock Exchange’s general index increased by 0.35%, gaining 27.50 points, to close at 7781.834 points.
“TASI” finished the trading day on Wednesday at 11270.57 points, and 13 sectors in the Saudi stock market declined, led by the financial industry by 0.87%, which was followed by the public utility sector by 0.82%. While the real estate management and development sector increased by 0.37% while the commercial and professional services sector only increased by 0.75%.
At the end of today’s trading, the general index of the Dubai Financial Market, which is made up of two subindices, rose by 0.22% to close at 2843.83 points, increasing 6.29 points, and the trading volume was 159.8 million shares, for a value of 127.6 million dirhams. Services  sector rose by 3.11%, followed by the banking sector with 0.43%, and then telecommunications and real estate at 0.15% each. However, investment and financial services decreased by 0.86%, insurance decreased by 0.33%, and transportation decreased by 0.06%.
Upon closing on Wednesday, the general index of the Abu Dhabi Stock Exchange, which reflects the performance of the overall market, gained 0.35%, for a total increase of 27.50 points, to close at 7781.834 points. Four sectors increased in value, led by the services sector by 3.16%, followed by the banking sector with 0.96%, and then the banking sector. After these last data points, communications decreased by 0.32%, energy decreased by 0.14%, consumer goods decreased by 0.96%, industry decreased by 0.85%, real estate decreased by 0.72%, investment and financial services decreased by 0.31%, and insurance decreased by 0.06%.
On Monday, the UAE financial markets closed its trading lower as the major stocks impacted the market. The ADX Index dropped 0.8 %, with 1.32 billion dirhams worth of transactions.
Abu Dhabi Commercial Bank shares fell 1.69%, 1.38% for Abu Dhabi Islamic, 1.90% for Aldar Properties, 0.37% for Alpha Abu Dhabi Holdings, 0.94% for Dana Gas, 0.99% for First Abu Dhabi Bank, and 1.85% for Ras Al Khaimah Real Estate.
The index’s performance was affected by the decrease of big stocks, with Aldar Properties and First Abu Dhabi falling 1.9% and 0.99%, respectively, and Alpha Abu Dhabi and ADNOC Distribution falling 0.37% and 1.37%.
UAE financial markets varied on Tuesday, with the decrease of Dubai Financial Market and the rising of Abu Dhabi Securities Exchange due to the support of “International Holding” company. However, there were no significant changes in the other indices.
With the session ending, Dubai Financial Market rose 1.2%to 2837.54 points, while Dubai Islamic shares fell 0.8% Dubai Refreshments 2.9%, Emaar Properties 1.2%, and Emaar Development 3.3%. The value of trades on the Abu Dhabi Stock Exchange increased by 0.11% to 1.34 trillion dirhams. Alpha Holdings increased by 1.26%, First Abu Dhabi Bank increased by 0.11%, and International Holdings increased by 0.55%.
During today’s trading, the value of trading on the Dubai Financial Market was 315.15 million dirhams, with a trading volume of 234.4 million shares and 2.3 thousand transactions.