UAE stocks soften as oil prices fall on China COVID containment

Oct 28 (Reuters) – United Arab Emirates stocks ended lower on Friday as oil prices fell after top crude importer China expanded COVID-19 restrictions.

Oil, which fuels growth in the region, fell to $96.46 a barrel by 1047 GMT, having risen 1.3% in the previous session.

Friday’s drop comes after an increase in Chinese cities COVID-19 Curbs On Thursday, buildings were sealed off and areas were locked down in an effort to stem the spread of the outbreak.

In Abu Dhabi, the index (<.FTFADGI>) Down 0.1%, pressured by the country’s largest lender Abu Dhabi First Bank, down 0.5% ()Abu Dhabi polymer company Borouge () Shares fell 1.4% after reporting a more than 23% drop in third-quarter net profit.

However, the index rose 5.5% for the month and ended the week up 1.7%, according to Refinitiv data.

Farah Mourad, senior market analyst at XTB MENA, said: “Abu Dhabi equities slowed after yesterday’s surge as traders moved to secure their gains. The market was also weighed down by mixed earnings from local companies.”

Dubai Benchmark Index (<.DFMGI>) It fell 0.5%, dragged down by its property stocks. Blue-chip developer Emaar Properties (<开始读>) fell 1.5%.

UAE’s largest lender Emirates NBD () The stock also retreated 0.1% after surging 1.1% on Thursday following strong quarterly earnings. read more

The index rose 0.3% for the month but ended the week down 1.5%.

Major stock markets in the rest of the Gulf were closed.

Reporting by Md Manzer Hussain and Shamsuddin Mohd in Bengaluru; Editing by Krishna Chandra Eluri

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