UAE markets end higher; IHC gains on India aluminium venture

Stock markets in the United Arab Emirates closed higher on Friday, tracking gains in global equities after a lukewarm U.S. jobs report tempered expectations of a near-term Federal Reserve rate hike.

The pan-European index STOXX 600 rose 0.2%, while MSCI’s broadest gauge of global equities edged up 0.1%.

The U.S. unemployment rate fell to 4.2% last month from 4.3% in May as more workers left the labour force. Soft jobs data reduced expectations of an imminent Fed rate hike and increased bets that rates will stay on hold until October.

Shifts in U.S. monetary policy have a significant impact on Gulf markets including the UAE, where most currencies are pegged to the dollar.

Dubai’s main index rebounded on Friday, rising 1.1% as gains in industrial and financial stocks helped sustain the momentum.

Toll-gate operator Salik Company jumped 2.4%, while blue-chip developer Emaar Properties and top lender Emirates NBD Bank each advanced 1.5%.

Separately, Emirates Global Aluminium, owned by Abu Dhabi and Dubai sovereign wealth funds, said on Thursday it was restoring production sooner than expected at its Al Taweelah complex, which was damaged by Iranian missile strikes in March, although hot metal output may take up to a year to return to previous levels.

Abu Dhabi’s benchmark index settled 0.9% higher, rising for a second session. Property giant Aldar Properties hiked 1.2%, while conglomerate Alpha Dhabi Holding climbed 4.3%.

International Holding Company, the UAE’s largest listed company by market value, advanced 0.6% after it unveiled plans to invest $11.5 billion in an integrated aluminium project in the eastern Indian state of Odisha through a joint venture with India’s Adani Group, a state official said on Thursday.

For the week, Dubai’s index added 0.7%, while the Abu Dhabi index recorded 0.2% gains, according to data compiled by LSEG.