Friday 16 August 2024

#UAE equities gain amid global rally on rate optimism | Reuters

UAE equities gain amid global rally on rate optimism | Reuters


Stock markets in the United Arab Emirates edged higher on Friday as investor sentiment was bolstered by encouraging U.S. inflation data and expectations of a rate cut by the Federal Reserve.

The sharp turnaround in sentiment came after a batch of U.S. data this week showed inflation moderating but retail spending was robust.

Monetary policy in the six-member Gulf Cooperation Council (GCC), including the United Arab Emirates, is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar.

As for lingering geopolitical risks, negotiators were to meet in Qatar again on Friday seeking a Gaza ceasefire agreement that could help avert a regional escalation, end a war that has killed tens of thousands of Palestinians and free Israeli hostages held by Hamas.

In Dubai, the main share index (.DFMGI), opens new tab rose 0.6% to settle higher for a third session in a row, with Emirates NBD Bank (ENBD.DU), opens new tab edging up 0.3% and Watania International Holding (WATANIA.DU), opens new tab surging 14.3% after reporting quarterly profit on Thursday.

Blue-chip developer Emaar Properties (EMAR.DU), opens new tab, however, was down 1.8%.

Abu Dhabi's benchmark index (.FTFADGI), opens new tab also rose for a third session, adding 0.5%, with conglomerate International Holding Company (IHC.AD), opens new tab up 0.9% and ADNOC Distribution (ADNOCDIST.AD), opens new tab up 2.6%.

ADNOC Gas (ADNOCGAS.AD), opens new tab fell 1.6% as stock traded ex-dividend.

On a weekly basis, Dubai's index was down 0.2% while Abu Dhabi's was up 1.4%.

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