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UAE Indices Diverge as US-Iran Hold Indirect Talks

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Stocks in the United Arab Emirates struggled to find direction on Wednesday as markets await the outcome of indirect technical talks between the US and Iran taking place in Qatar.

At the close of trading, the FTSE ADX General Index declined 0.16%, while the DFM General Index added 0.915%.

US envoys Jared Kushner and Steve Witkoff met Qatari Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani on Tuesday to discuss the ongoing situation with Iran. Iran, however, said it will not meet the US delegates but is engaged with Qatari mediators.

Oil prices dropped slightly as markets remained optimistic that both countries would work out a deal to reopen the Strait of Hormuz and that oil flows through the waterway could return to pre-war levels. Brent crude oil futures stood at nearly $72.383 per barrel as of 3:17 pm UAE time, down 0.78% from the previous day.

"Oil prices came under further pressure yesterday, leaving ICE Brent to close out its weakest quarter since 2020, dragged down by growing confidence that Persian Gulf crude flows are on the mend," ING analysts said. "The oil market continues to take an optimistic view on a supply recovery from the Persian Gulf, despite recent flare-ups between the US and Iran. Indirect talks in Doha this week have reportedly been positive."

Zooming in at home, UAE President Sheikh Mohamed bin Zayed Al Nahyan met with his Chadian counterpart, Mahamat Idriss Déby Itno, to discuss their comprehensive economic partnership agreement and bolster their bilateral ties in the economy, trade, and renewable energy sectors.

Over to corporates, Abu Dhabi National Co. for Building Materials (ADX:BILDCO), d/b/a Bildco, agreed to buy a 50% stake in AG Group, an integrated business group based in Dubai. The building materials company's stocks closed the session 1.21% in the green.

Emirates NBD (DFM:EMIRATESNBD) shares closed 1.56% higher as it signed a memorandum of understanding with Alba Cars to offer short-term automotive financing services to local dealers and partners.

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