Optimism about passing the "debt ceiling" agreement raises UAE stocks

2023-06-02 14:21:32

UAE stocks

Most UAE stocks rose on Friday, on the back of reaching an agreement on the US debt ceiling, which averted a catastrophic default and contributed to improving sentiment in most asset classes.

Farah Murad, senior market analyst in the Middle East and North Africa division at XTB, said that the UAE stock markets witnessed an improvement in performance, with dealers responding positively to the US debt ceiling agreement, which raised concerns in global markets for some time.

And the Arab Monetary Fund had expected the continuation of the economic growth momentum in the UAE during the current and next years, to achieve an average high economic growth rate of 4.6 percent for the period from 2022 to 2024, as a result of the increase in oil prices and high confidence in business.

In a recent report entitled “Prospects for the Arab Economy”, the fund stated that the UAE economy is expected to grow by 4.2 percent in the current year 2023, while the consumer price index is expected to decline to 2.9 percent in 2023 and 2.57 percent in 2024.

markets performance

The main index of the Dubai Stock Exchange rose 0.6 percent, recording gains for the sixth day in a row, supported by strong gains in the financial sector, so that the index achieved a weekly rise of 2.2 percent.

Mashreq Bank’s shares increased by more than nine percent, in the largest daily increase in nearly four months. Dubai’s largest bank, Emirates NBD, rose 1.1 percent.

The Abu Dhabi Stock Exchange index rose 0.4 percent, after falling for two consecutive sessions, supported by the rise of First Abu Dhabi Bank, 1.6 percent, after the bank announced two new appointments in the senior management team.

The Abu Dhabi Stock Exchange index recorded a weekly decline of 0.49 percent.