Dubai's benchmark share index jumped on Wednesday to its highest level in more than a decade, while most other markets in the Gulf were subdued as investors anticipated fewer rate cuts by the U.S. Federal Reserve in the coming year.
Dubai's benchmark stock index (.DFMGI), opens new tab extended its gain to a second straight session, rising 0.1% to 5,084, its highest in 10 years and three months. Emirates NBD (ENBD.DU), opens new tab rose 1.2% and supermarkets operator Spinneys 1961 Holding (SPINNEYS.DU), opens new tab advanced 1.3%.
Shuaa Capital (SHUA.DU), opens new tab rose 1.4% to its highest in over three months. The investment bank's board approved on Friday a deal with a senior creditor to restructure 208 million dirhams ($56.64 million) in debt facilities.
The Qatari benchmark index (.QSI), opens new tab slipped for a third straight session and ended 0.6% lower, with almost all stocks in the red. Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, fell 0.8% and Qatar Gas Transport (QGTS.QA), opens new tab dropped 1.5%.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was down 0.2%, with most of its constituents posting losses. Al Rajhi Bank (1120.SE), opens new tab fell 0.7% and media giant MBC Group (4072.SE), opens new tab slipped 3.3%.
Red Sea International (4230.SE), opens new tab climbed 6.5% after the developer said on Tuesday it had signed a 318.9 million riyals contract with Modern Building Leaders Co.
"The market is expected to maintain its volatile pattern this week, with attention shifting to potential fourth-quarter results at the beginning of the new year and ongoing IPOs", said Joseph Dahrieh, managing principal at Tickmill.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab snapped its three-session winning streak and fell 0.2%, pressured by a 1% decline in conglomerate International Holding (IHC.AD), opens new tab and a 0.9% loss in Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab.
Fed policymakers lowered their rate cut projections for 2025 to 50 basis points, from 100 basis points, and increased their inflation forecast. Traders are pricing in about 35 basis points of easing for 2025.
The Fed's decisions have a significant impact on the Gulf region's monetary policy, as most currencies there are pegged to the U.S. dollar.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab edged up 0.1%, aided by a 4.7% rise in Alexandria Container (ALCN.CA), opens new tab and a 0.9% gain in El Sewedy Electric (SWDY.CA), opens new tab.
The International Monetary Fund reached a staff-level agreement with Egypt, potentially unlocking a $1.2 billion disbursement.
