UAE shares fall as geopolitical uncertainty keeps traders cautious

Stock markets in the UAE experienced a decline on Friday due to geopolitical uncertainty in the region, causing investors to become cautious. The Abu Dhabi benchmark index fell 1.3%, reaching its lowest point in 18 months, largely due to a 1.7% drop in Aldar Properties. The nation's largest listed conglomerate, International Holding, saw its shares plunge 2.8% to a four-year low after reporting a 28% drop in net profit for the third quarter, falling from 8.70 billion dirhams the previous year to 6.22 billion dirhams.

"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," commented Mahmoud Mashal, a senior market analyst at VT Markets Dubai. Dubai's main index declined 0.3%, breaking a four-day upward trend, mainly affected by losses in financial and industrial sector stocks.

The top lender, Emirates NBD, fell 1.3%, while toll operator Salik Company dropped 1.1%. However, Emaar Development experienced a rise of 1.2% after its parent company, Emaar Properties, announced a plan to make a voluntary cash offer for up to 100% of its shares. The potential deal, worth up to $3.43 billion, could see Emaar Properties purchase the remaining stake it does not currently hold in Emaar Development.

The company plans to offer 15 dirhams per share for the outstanding shares under a voluntary cash offer. Brent crude prices rose by 0.5% to $98.73 a barrel by 11:55 GMT. Over the week, Abu Dhabi's index fell 0.8%, while Dubai's index surged 4.4%, marking its largest weekly gain in over six months, according to LSEG data.