Emirati Equities Close Mixed as Geopolitical Tensions Weigh on Sentiment; Al Seer Marine Surges
Geopolitical tensions and rising oil prices remained in the spotlight as bourses in the United Arab Emirates again struggled to find a unified direction on Thursday.At the close of trading, the FTSE ADX General Index was little changed at 0.056% in the green, while the DFM General Index fell 0.394%.Iran's Islamic Revolutionary Guard Corps said it targeted eight oil tankers and two US vessels after the US Central Command destroyed five Iranian crude tankers on Tuesday. The escalating conflict, coupled with Houthi attacks on Saudi energy infrastructure and cities, sent oil prices above the $100 per barrel threshold."Iran said it is ready to intensify the war, while President Trump said that the war is likely to continue until just after the midterm elections in early November. The risk is that escalation starts leading to meaningful disruptions to Strait of Hormuz flows. Oil flows have surprised to the upside in recent weeks, but the market could tighten more sharply if ongoing escalation translates into disrupted oil flows once again," ING said.On the economic calendar is the release of the August consumer price index print by the US Bureau of Labor Statistics on Friday, enabling investors to gauge inflation and predict interest rate moves.Back home, UAE President Sheikh Mohamed bin Zayed Al Nahyan and his German counterpart Frank-Walter Steinmeier discussed ways to bolster bilateral economic ties and reviewed regional and international developments during the former's state visit to Germany.Turning to corporate news, Al Seer Marine Supplies and Equipment Co. (ADX:ASM) disposed of part of its listed equity investments through separate on-market transactions and allocated the proceeds to prepay a 600 million-Emirati-dirham tranche under its current term loan facility. The marine equipment supplier was the Abu Dhabi bourse's standout stock and closed 14.80% higher.Emirates NBD Bank (DFM:EMIRATESNBD) closed 0.27% higher after it partnered with Shamal Holding to deliver integrated home financing services with structured payment plans to buyers and investors of the latter's off-plan residential projects in Dubai.
