UAE shares fall as geopolitical uncertainty keeps traders cautious

Stock markets in the United Arab Emirates declined on Friday as geopolitical uncertainty in the region weighed on investor sentiment and kept traders cautious.

Abu Dhabi’s benchmark index dropped 1.3% to hit an 18-month low, weighed down by a 1.7% fall in real estate giant Aldar Properties.

The UAE’s largest listed conglomerate, International Holding, slumped 2.8% to a more than four-year low after reporting that third-quarter net profit fell more than 28% to 6.22 billion dirhams ($1.69 billion), from 8.70 billion dirhams a year earlier.

“UAE stock markets will likely remain sensitive to security developments in the region as investors keep a close eye on diplomatic progress and any deal that improves shipping conditions in the Strait of Hormuz,” said Mahmoud Mashal, senior market analyst at VT Markets Dubai.

Dubai’s main index eased 0.3%, breaking a four-session winning streak, pressured by losses in financial and industrial sector stocks.

Top lender Emirates NBD fell 1.3%, while toll operator Salik Company slipped 1.1%.

However, Emaar Development EMAAR gained 1.2% after its parent, Emaar Properties, said it intends to make a voluntary cash offer for up to 100% of its shares.

Emaar Properties’ shares closed 0.2% lower.

Emaar Properties unveiled its plan on Wednesday to launch an offer to buy the stake it does not already own in its construction arm Emaar Development in a potential deal worth as much as $3.43 billion.

Emaar Properties, which owns just over 79% of Emaar Development, plans to offer 15 dirhams per share for the outstanding stake under a voluntary cash offer, it said in a filing.

Brent crude was up 0.5% at $98.73 a barrel by 1155 GMT.

Abu Dhabi’s index fell 0.8% for the week, while Dubai’s index rose 4.4%, its biggest weekly gain in more than six months, according to LSEG data.