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Abu Dhabi bourse extends gains, Dubai rises in choppy trade

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Dec 16 (Reuters) – United Arab Emirates shares ended higher on Friday, with Abu Dhabi’s index rising for a second straight session following a recent price correction.

In Abu Dhabi, stock (.FTFADGI) Americana Restaurants International rose 1.6%, its biggest percentage gain since late October (AMR.AD) climbed 2.3 percent.

Americana, which operates KFC, Pizza Hut, Hardee’s and Krispy Kreme franchises, made its debut earlier this week after raising $1.8 billion in an initial public offering and subsequent dual listings in Abu Dhabi and Riyadh.

Elsewhere, the country’s largest bank, First Abu Dhabi Bank (FAB.AD)It touched a 19-month low on Monday, rising 4.3%.

However, Wael Makarem, senior market strategist at Exness, said the market still faces fresh downside risks as oil prices could extend their losses.

Oil – the main catalyst for Gulf financial markets – fell as the market assessed the fallout from central bank rate hikes, but was on track for its biggest weekly gain in 10 weeks on concerns over supply disruptions and hopes of a recovery in Chinese demand.

Dubai main stock index (.DFMGI) Dubai Islamic Bank up 0.4% in choppy trade with Sharia-compliant lender (DISB.DU) rose 1.4%.

According to analyst Makarem, the Dubai Stock Exchange has found some support in improving local fundamentals, while tourism is growing faster.

Reporting by Ateeq Shariff in Bengaluru; Editing by Maju Samuel

Our standards: Thomson Reuters Trust Principles.

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