Friday 13 September 2024

#UAE stocks gain on Fed rate cut hopes | Reuters

UAE stocks gain on Fed rate cut hopes | Reuters


The equity markets in the United Arab Emirates (UAE) rose on Friday, driven primarily by an increase in financial sector stocks, with investors anticipating a significant interest rate cut by the U.S. Federal Reserve next week.

Monetary policy in the Gulf Cooperation Council (GCC), including the UAE, often aligns with the U.S. Federal Reserve's decisions, as most of the regional currencies are pegged to the U.S. dollar.

When the U.S. Federal Reserve makes decisions about interest rates, GCC central banks typically mirror these changes to maintain currency stability and avoid significant capital flows that could disrupt their economies.

In Dubai, the main share index (DFMGI) saw a 0.9% increase, largely due to a 1.8% rise in Dubai's largest lender Emirates NBD Bank (ENBD.DU) and a 0.2% lift in Dubai Islamic Bank (DISB.DU), opens new tab.

Mobility solutions provider Dubai Taxi Company (DTC.DU) saw its stock rise by 2.3% after it announced the company had been awarded 300 new plates, expanding its fleet, at the latest auction held by Dubai's Roads and Transport Authority (RTA).

The Abu Dhabi stock index (FTFADGI) increased by 0.5%, driven by gains in key sectors. Specifically, the country’s largest lender, First Abu Dhabi Bank (FAB.AD), opens new tab, saw its stock rise by 1.8%, and telecoms firm e& (formerly known as Etisalat) experienced a 1.5% increase.

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