UAE Equities Slide as Geopolitical Risks Resurface
United Arab Emirates indices closed Thursday in the red again as investors resorted to a cautious stance amid the escalating situation between the US and Iran.At the close of trading, the FTSE ADX General Index was little changed at 0.033% in the red, while the DFM General Index declined 0.184%.Dominating headlines all over the world are the US Central Command's second round of strikes on Iran, targeting 90 air defense systems, coastal surveillance assets, missile and drone storage sites, and military logistics infrastructure along the country's coastline. Iran responded by attacking US bases in the Gulf."Tanker traffic through the Strait of Hormuz has essentially stopped, which tells you more about risk perception right now than any statement from Washington or Tehran. Brent's climb to its highest level since 19 June shows how quickly the market is pricing in a ceasefire the US president himself says is over," Rystad Energy head of geopolitical analysis Jorge Leon commented. "It's unclear whether diplomatic channels remain open in practice; the latest military exchanges raise the risk that talks will either stall or continue under much more fragile conditions. Fundamentally, the events of the last few days significantly weaken any confidence that the current 60-day truce can still evolve into a permanent peace agreement."Zooming in at home, Dubai Chambers agreed to collaborate with digital financial platform Wio Bank to deliver business account opening, financing, and credit services to small and medium-sized enterprises in Dubai.On the corporate side, Lulu Retail (ADX:LULU) shares closed the session 0.21% lower. The Abu Dhabi-listed retailer opened a new express store in Oman as part of its broader expansion and customer access-enhancing strategy.Elsewhere, Dubai Electricity and Water Authority (DFM:DEWA), d/b/a Dewa, and Dubai Taxi Co. (DFM:DTC) inaugurated the first ultra-fast electric vehicle charging hub for the latter's electric taxi fleet in Dubai. Dewa gained 0.72%, while Dubai Taxi stocks remained flat at trading's close.
