UAE markets closed higher on Tuesday, ahead of a provisional agreement between Saudi Arabia and Russia to freeze oil production at January levels.
Dubai and Abu Dhabi stocks rose in anticipation of the closed-door meeting in Doha between oil ministers from Saudi Arabia, Russia and Venezuela.
The Dubai Financial Market General Index surged 2 per cent to 3,064.84, while Abu Dhabi’s headline index finished up 0.8 per cent at 4,140.22.
However, the decision to hold production at January levels received a lukewarm response elsewhere.
Brent crude futures, which had risen to $35.55 per barrel, sharply pared gains to $33.84 yesterday afternoon.
“There was disappointment that there wasn’t an actual cut announced, even though many weren’t actually expecting one,” said Julian Bruce, the head of institutional trading at EFG-Hermes in Dubai.
“The fact that production was maintained at what is a historic high level was a disappointment for many.”
The Euro Stoxx 50 was trading down 0.3 per cent in the mid-afternoon, while Saudi Arabia’s Tadawul pared early gains to finish up just TKTK.
Dubai Investments and Emaar Properties were among the main gainers on the DFM, closing up 4.8 and 3.2 per cent respectively.
In Abu Dhabi, ADCB surged 4.5 per cent to Dh6.48, while FGB gained 1.7 per cent to Dh11.85.
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