The index panels in Abu Dhabi closed over the weekend at lower levels. It seems that the latest statistics for the oil prices of the Middle Eastern nation are mimicking the fall of corporate earnings. Overall economic and commercial activity has slowed down which has left a bad taste among big investors. Meanwhile, the oil price index for Dubai is showing a backward somersault.
When it comes to the overall condition of the Gulf financial setup, it seems that the Crude oil prices are reflecting a cascading impact as the main catalyst. The latest decline range was estimated to reduce by $1 to $98.26 at the weekend close. The former is the direct consequence of OPEC cutting down the growth estimates globally by 260,000 barrels per day for 2022.
For the Abu Dhabi index, the overall fallback was recorded at 0.6%. The fractional decline arrived at the end of a 5-day gains streak that was caused by giants like Conglomerate International Holding Company stocks dropping by 1.4%. At the same time, the biggest lender in Emirates First Abu Dhabi Bank also dropped 0.8% stock points.
Another noteworthy stock drops are Julphar by 3.7%. Perhaps the most visible crack was felt by Gulf Pharma with a 90% decrease in its second quarter net profits retracting to only 4.8 million dirhams or $1.3 million. On the other hand, from a weekly view, Abu Dhabi investment retained a gain of 3.3% as per projections of Refinitiv Data services.
Dubai is also Suffering from the Latest Oil Crisis
Emaar Properties, one of the most prominent companies in the Dubai Stock market is also under pressure from the latest stock market tumble. The stocks of EMAR.DU fell by 1.6% after the real estate organization signed a deal with Dubai Holdings to buy stakes in Dubai Creek Harbour. The DCH joint venture’s estimated entrance value for Emaar is estimated at 7.5 million dirhams or $2.02 billion. On the other hand, the main share market index.DFMGI gained 0.3%.
Meanwhile, Sharia-complaint Dubai Islamic Bank also gained 0.7% as a central lender in the region. Air Arabia stocks gained 2.3% and reported a 16-fold increase in the second quarter earnings valued at 160 million dirhams or $43.46 million. CEO of MENA BDSwiss, Daniel Takieddine claimed that the recent volatility of the Dubai Stock Market can turn into gains after appropriate price corrections.