MIDEAST STOCKS-UAE stocks fall as US-Iran deadlock weighs

By Md Manzer Hussain

Oct 2 (Reuters) - United Arab Emirates stock markets closed lower on Friday as a stalemate in US-Iran negotiations dampened risk appetite and unsettled energy markets.

Dubai's benchmark index .DFMGI fell for a fourth straight session, closing 0.5% lower, with nearly all constituents in negative territory. Emirates NBD ENBD.DU, Dubai's largest lender, fell 1.9%, while road-toll operator Salik SALIK.DU dropped 2.7%.

In Abu Dhabi, the index .FTFADGI declined 0.3% for a seventh straight session, weighed down by basic materials and consumer discretionary shares. Conglomerate Alpha Dhabi Holding ALPHADHABI.AD lost 1.1%, while Abu Dhabi Commercial Bank ADCB.AD fell 1.3%.

Markets remain under pressure, said Daniel Takieddine, CEO of Sky Links Capital Group, citing "geopolitical uncertainty and stalled US-Iran talks."

"Reports of a US military buildup could weigh on investor sentiment and dampen hopes for a ceasefire, particularly as shipping disruptions continue in the Strait of Hormuz," he added.

The Wall Street Journal reported that the US was deploying a third aircraft carrier and up to 10,000 additional troops to the Middle East, as US President Donald Trump considered resuming strikes on Iran after the November midterm elections.

Iranian President Masoud Pezeshkian said on Thursday that Tehran would not shy away from dialogue with Washington, as it considered the US response to its latest proposal to revive the collapsed Gulf ceasefire.

For the week, the Abu Dhabi index lost 2.2% and Dubai's fell 1.3%, according to LSEG data.