UAE markets close higher mirroring oil prices
Business
Investors' risk aversion increases due to possibility of fewer Russian shipments
DUBAI (Reuters) - When investors' risk aversion increased due to the possibility of fewer Russian shipments, stock markets in the UAE closed higher, mirroring oil prices.
Friday saw the continuation of oil price advances as Brent crude futures rose 61 cents, and 0.74%, to $82.82 per barrel at 1114 GMT.
According to three sources in the Russian oil market, Russia wants to surpass its planned production restrictions and reduce oil shipments from its western ports by up to 25% in March compared to this month, according to an exclusive report by Reuters on Wednesday. This move is intended to boost oil prices.
The main index in Dubai closed 0.2% higher despite a tumultuous trading day thanks to gains in the utilities sector companies.
Emirates Central Cooling Systems Corp, a state-run utility, and Dubai Investments both increased 1.3%.
The benchmark index for Abu Dhabi increased by.01%, ending a four-session losing trend. Shares of Sharjah-based Dana Gas and real estate developer Aldar Properties both saw gains of 2.2% and 2.1%, respectively.
Fujairah Construction Industries was one of the gainers, rising 5.9%, its greatest intraday gain since late November, following the announcement of a full-year cash dividend equal to 30% of the company's share capital.
Rising oil prices and developments around the ADNOC Gas IPO helped to increase investors' willingness to take on risk, according to Daniel Takieddine, CEO MENA at BDSwiss.
The Abu Dhabi and Dubai markets finished the week on a downer, with respective indices shedding 1.2% and 1.1%.
