UAE Shares Blink Red; Oil Prices Fall After US-Iran Strikes Ease
Stocks in the United Arab Emirates closed lower despite a suspension of hostilities between the US and Iran, sending oil prices down and lifting investor optimism for renewed peace talks.At the close of Tuesday trading, the FTSE ADX General Index fell 0.104%, while the DFM General Index lost 0.93%.Oil prices were trading lower after US President Donald Trump said talks with Iran are underway and there is a "good chance" of a deal. Trump also warned to resume military action if the talks fail."We have been in this position multiple times before, and so the market may be getting a bit ahead of itself. At the end of the day, there has been no improvement in tanker flows through the Strait of Hormuz. If this move lower is to be sustained, we will need to see a recovery in flows through the strait," ING said. "Furthermore, even in the event of a deal, one would expect that the market will need to continue to price in a large risk premium, given that recent events have demonstrated how quickly a deal can unravel."Brent crude oil futures stood at nearly $86.94 per barrel as of 3:38 pm UAE time, down 1.61% from the previous day.Zooming in at home, the Dubai International Financial Centre's number of active registered companies and regulated financial services firms grew to 10,018 and 1,134, respectively, for the first half.On the corporate side, Fertiglobe (ADX:FERTIGLB) logged a 237% year-over-year growth in attributable profit and a 59% increase in revenue for the first half amid higher market prices of urea and ammonia. The fertilizer company closed the session 0.38% higher.Elsewhere, United Securities LLC affirmed its buy rating on Emirates NBD Bank (DFM:EMIRATESNBD) and revised its price target to 36 Emirati dirhams per share, citing the lender's strong operational performance in the second quarter. Its shares lost 2.50% at closing.
