Analysts say UAE stocks are unlikely to be much impacted by sanctions on Russia.
KT file
The UAE stock markets opened lower on Tuesday morning after making big gains in the previous session.
Dubai's main index dropped 0.28 per cent to 3,344.97 while Abu Dhabi Securities Exchange fell half a per cent to trade at 9,272.73 points at the opening of the market.
The UAE bourses ended Monday’s session on a very high note after Ukraine and Russia began talks on Poland’s border to end the military conflict.
The Dubai Financial Market General Index (DFMGI) gained 1.3 per cent on February 28 to mark its best month since November, rising 4.7 per cent for the month. Similarly, the Abu Dhabi index also ended up 2.2 per cent on Monday, rising the most in a single session since December 6.
Asian shares also rallied on Tuesday on Ukraine-Russia peace with most of the major markets across the continent starting the day in positive territory. The US and European countries imposed sanctions against the Russian banks and companies after the military attack.
Analysts say UAE stocks are unlikely to be much impacted by the Russian sanctions.
Moreover, the heightened geopolitical risk has raised oil prices, which can boost the UAE coffers in the near term. Also, good political relations between the leadership of both nations can positively benefit UAE. In addition, Russian HNIs might be more comfortable investing in UAE than other European countries, buoying local bourses.
On the Dubai bourse, most blue-chip stocks were trading in the red territory on Tuesday, led by Emaar Properties (down 0.39 per cent) and Emirates NBD Bank (-1.39 per cent). Most of the insurance scrips were also trading in the negative territory in early trade.
In Abu Dhabi, the drop was led by blue-chip stocks including telecom major Etisalat, Abu Dhabi Commercial Bank, Aldar Properties and Adnoc Distribution.
waheedabbas@khaleejtimes.com
Got an interesting story to tell in the UAE? We want to hear all about it. Write to the nation's best reporting team, as we cover the emirates like no one else.