UAE markets fall on weak oil prices

Dec 1 (Reuters) – Stock exchanges in the United Arab Emirates closed lower on Friday on volatile oil prices after OPEC+ producers agreed to voluntary oil output cuts for early next year that fell short of market expectations.

Saudi Arabia, Russia and other members of OPEC+, who pump more than 40% of the world’s oil, agreed to voluntary output cuts of about 2.2 million barrels per day (bpd) for the first quarter of 2024.

Brent crude, a key catalyst for financial markets in the Gulf, was trading 0.2% lower at $80.84 a barrel by 1141 GMT.

Abu Dhabi’s main index (.FTFADGI) was down 0.2%, snapping a three-session winning streak, with IHC-owned conglomerate Alpha Dhabi Holding (ALPHADHABI.AD) losing 2.5% and investment firm Multiply Group (MULTIPLY.AD) falling 3.1%.

Meanwhile, Abu Dhabi’s PureHealth Holding announced plans to raise 3.62 billion dirhams ($985.81 million) from the sale of a 10% stake through a public share sale.

Dubai’s benchmark index (.DFMGI) settled 0.1% lower, dragged down by a 0.9% fall in toll operator Salik Company (SALIK.DU), while market heavyweights Emaar Properties (EMAR.DU) and Emirates NBD Bank (ENBD.DU) declined 0.5% and 0.6% respectively.

The Dubai stock market remained under some pressure as caution dominated ahead of a talk later in the day by Federal Reserve Chair Jerome Powell for any clues on the future path of U.S. interest rates, said George Pavel, general manager at Capex.com Middle East.

Other Gulf markets were closed on Friday.

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