Stock markets in the United Arab Emirates (UAE) rebounded on Friday, as oil prices touched seven-year highs on fears of supply disruptions, according to Reuters.
Brent crude rose $1.32, or 1.5 per cent, to $92.43 a barrel by 1120 GMT, having touched its highest since October 2014 at $92.66 earlier in the session. .
The Dubai stock index (.DFMGI) gained 0.6 per cent, recovering from losses in the previous session, supported by its financial stocks, as Commercial Bank Of Dubai jumped 8.4 per cent and its largest lender, Emirates NBD Bank (ENBD.DU), gained 0.8 per cent. The index was down 1.5 per cent for the week.
The index trimmed its weekly losses but continues to trade sideways on the broader picture in the absence of strong catalysts, said Wael Makarem, Senior Market Strategist, MENA, at Exness.
The UAE said on Monday it would introduce a federal corporate tax on business profits for the first time starting June 1, 2023, although it kept the rate low, at 9 per cent, to maintain its attractiveness for businesses.
"While the introduction of the new profit tax does not seem to be a source of concern for now," Makarem said.
In Abu Dhabi, shares edged up 0.1 per cent, led by a 1.2 per cent gain in real estate developer Aldar Properties and a 13.3 per cent surge in National Bank of Ras Al Khaimah, after reporting full-year net profit rose more than 33 per cent to 756.1 million dirhams ($205.88 million).
Aldar Properties said on Thursday it planned to invest 1 billion dirhams ($272.29 million) in Aldar Education, its wholly owned subsidiary, and the largest premium school operator in Abu Dhabi . Abu Dhabi index also fell 0.4 per cent for the week.
Markets in the UAE shifted to a new Monday-to-Friday working week from the start of 2022 to better align with global markets.
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