On Friday, stock values in the UAE experienced a downturn, influenced by a dip in oil prices. The robust economic figures from the U.S. and Germany raised the spectre of persistent inflation, potentially extending the period of elevated interest rates and dampening the demand for oil. Brent crude’s price fell by 0.74% to $80.76 per barrel as of 1032 GMT.
Recent data revealed a decrease in U.S. unemployment claims, while the S&P Global Flash PMI indicated a more rapid expansion in business activity than anticipated for May. The currencies of GCC nations, including the UAE, are tied to the U.S. dollar, often aligning their monetary policies with the Federal Reserve.
The Abu Dhabi stock index (.FTFADGI) fell by 0.6%, reaching a 27-month low, primarily due to a 6.9% decline in shares of the government-controlled Abu Dhabi National Energy Company (TAQA.AD). The Abu Dhabi healthcare entity, Pure Health Holding (PUREHEALTH.AD), also saw a 5.8% reduction in its stock value.
Conversely, the cryptocurrency mining company Phoenix Group (PHX.AD) saw a 4.8% increase in its shares, bouncing back from a consecutive six-session loss streak that had pushed its value below the initial offering price. Additionally, Palms Sports (PALMS.AD) experienced a 2.6% surge following its acquisition of an 80% stake in Yas Physiotherapy Center.
Dubai’s primary stock index (.DFMGI) closed 0.3% lower, marking a 1.4% decline for the week and hitting its lowest point since the previous December. Notably, Emaar Properties (EMAR.DU) and Emirates NBD Bank (ENBD.DU) each lost 1.6% in value.
Overall, Abu Dhabi’s index recorded a 2.3% weekly loss, its most significant drop since mid-October of the previous year.