Key Takeaways
- Stock markets in the UAE closed higher, tracking gains in global equities.
- Emirates NBD Bank and Dubai Islamic Bank led local gains with 1.4% and 3.1% increases respectively.
- E& Group saw its highest intra-day gain in over three-and-a-half years after selling its Vodafone stake.
Stock markets in the United Arab Emirates rebounded on Friday, following gains in global equities as investors recovered from two consecutive days of losses. The renewed hostilities between the United States and Iran seemed to have temporarily dampened investor sentiment, but this was quickly offset by positive market movements.
Dubai’s main share index surged 0.9%, with financial and industrial stocks leading the gains. Dubai Islamic Bank saw a significant increase of 3.1%, while top lender Emirates NBD Bank also rose by 1.4%. These gains were bolstered by other sectors, including telecoms and energy shipping.
Among the notable performers was Taaleem Holding, which climbed 3.5% after reporting a 21% rise in its third-quarter net profit to 105.6 million dirhams ($28.75 million). This positive performance contributed significantly to the overall market sentiment.
A major highlight of Friday’s trading was Emirates Global Aluminium (EGA), which announced that its Al Taweelah alumina refinery in Abu Dhabi had restarted operations, with plans to reach 50% capacity within days. The company did not provide further details on this development but highlighted its ongoing commitment to operational efficiency.
The UAE’s benchmark index also saw a positive close, settling up by 0.5%. This was led by Emirates NBD Group (E&), which recorded its highest intra-day gain in over three-and-a-half years after announcing the sale of its entire stake in Vodafone to an investment vehicle managed by French billionaire Xavier Niel’s family for $5.95 billion. The deal values Vodafone shares at 112.5 pence, a 15% premium to their last close.
E& Group's surge was particularly notable as it marked the highest intra-day gain in over three-and-a-half years, reflecting strong investor interest and confidence in the transaction. The sale is expected to result in a net cash return of approximately $1.3 billion for E& Group.
Oil prices, which are crucial for Gulf economies, also saw an uptick, rising 0.7% to $76.86 per barrel by 11:36 GMT on Friday. This increase further supported the overall positive sentiment in the UAE markets.
