Gulf equities end mixed; Fed rate outlook in focus | Reuters

Gulf equities end mixed; Fed rate outlook in focus | Reuters

Gulf shares were mixed on Wednesday as investors exercised caution ahead of the U.S. Federal Reserve's last policy announcement of the year after economic data indicated consumer spending remained solid.

The U.S. central bank is widely expected to deliver a 25-basis-point interest rate cut at the end of its meeting later in the day, but the focus will be on how much further Fed officials think they will reduce rates in 2025.

The Fed's decisions impact monetary policy in the Gulf, where most currencies, including the dirham, are pegged to the U.S. dollar.

Shares in Dubai (.DFMGI), opens new tab slipped 0.8% after the benchmark stock index hit its highest in more than a decade for two straight sessions. Emirates NBD (ENBD.DU), opens new tab, Dubai's largest lender, dropped 4.5% and Emaar Properties (EMAR.DU), opens new tab lost 2.8%.

Saudi Arabia's benchmark stock index (.TASI), opens new tab bounced back from losses in the previous session, inching up 0.1%. Oil major Saudi Aramco (2222.SE), opens new tab rose 1.1%, while Savola Group (2050.SE), opens new tab surged 10% to hit an eight-month high.

The Kingdom's largest foods producer, Savola, said on Sunday its shareholders had approved the board's proposal to reduce capital and compensate the eligible shareholders by paying 8.34 billion riyals ($2.22 billion) in the form of Almarai shares.

Meanwhile, Saudi Arabia's crude oil exports in October rose to their highest level in four months.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab was up 0.3%, lifted by gains in most sectors. Conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab climbed 5.6%, while Ghitha Holding (GHITHA.AD), opens new tab rose 4%.

The food and beverage giant Ghitha said on Tuesday it has amicably scrapped the deal to acquire a 44% stake in MNG Havayollari ve Tasimacilik A.S.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was down 0.3%, with most constituents posting losses. Talaat Moustafa Group (TMGH.CA), opens new tab dropped 1.4% and EFG Holding (HRHO.CA), opens new tab slid 2.5%.

"While investors await the Fed's decision, concerns remain that a hawkish outlook could strengthen the U.S. dollar, which may put additional pressure on the Egyptian pound, said George Pavel, general manager at Naga.com Middle East.

"This currency dynamic could negatively impact market sentiment".