Stocks in the United Arab Emirates are heading into the holidays on a positive note, buoyed by optimism of a potential agreement between the US and Iran.
At the close of Monday trading, the FTSE ADX General Index added 0.453%, while the DFM General Index was up 1.136%. The bourses will remain closed from Tuesday until Friday in observance of Eid Al Adha holidays.
US President Donald Trump said in a social media post that talks with Iran are moving forward in an "orderly and constructive" manner and that he directed his representatives not to rush into a deal. Trump also stated that the Strait of Hormuz blockade will remain in place until an agreement is signed.
Meanwhile, Iranian Foreign Ministry spokesman Esmaeil Baghaei said that a framework was reached with the US on certain issues, but it does not mean that a deal is imminent.
"We've been at this stage before, only for talks to break down. Therefore, the market will likely be more cautious about overreacting to these headlines," ING said. "The US suggests that any final deal could take several days. Meanwhile, local Iranian media claims that the US is still blocking some key Iranian demands. Obviously, the big unknown is how the US and Iran will resolve their differences on Iran's nuclear programme."
Back home, Abu Dhabi National Oil Co, or Adnoc, was reportedly involved in the transport of oil and gas shipments through the Strait of Hormuz by switching off its vessels' transponders, Bloomberg News reported.
Amid a quiet day on the corporate side, FAB Securities reiterated Adnoc Gas' (ADX:ADNOCGAS) buy rating with a price target of 4.30 Emirati dirhams after the natural gas distribution company's decline in its first-quarter net attributable profit exceeded the financial services firm's estimate. Its shares closed the session 2.39% higher.
Over in Dubai, Sukoon Insurance (DFM:SUKOON) launched a new platform enabling its customers to navigate products and access claims information in a matter of minutes. Shares of the insurance company ended the session flat when it last traded on April 21.