Dubai's stock market ended higher on Friday, extending gains from the previous session, after most central banks in the region cut their key interest rates mirroring the Federal Reserve, although the Abu Dhabi index eased.
The Fed cut its benchmark rate by 50 basis points (bps) on Wednesday and projected a further half-point rate cut by year-end, a full point next year and a half-point trim in 2026.
The United Arab Emirates cut its base rate applied to the overnight deposit facility by 50 basis points on Wednesday, from 5.40% to 4.90%, the country's central bank said in a statement.
Monetary policy in the Gulf Cooperation Council (GCC) often aligns with the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
Dubai's main share index (.DFMGI), opens new tab gained 0.3%, Parkin Company (PARKIN.DU), opens new tab, which oversees public parking operations in the Emirates, advanced 4.3%.
In Abu Dhabi, the index (.FTFADGI), opens new tab dropped 0.7%, weighed by a 1.4% slide in conglomerate International Holding (IHC.AD), opens new tab.
Oil prices - a catalyst for the Gulf's financial markets - eased, but were on track to register gains for a second straight week following the Fed rate cut and declining global stockpiles.
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