UAE bourses end higher on hope of Fed rate hike pause

DUBAI: Stock markets in the United Arab Emirates (UAE) ended higher on Monday on the expectation that the US Federal Reserve is nearing the end of its monetary policy tightening cycle.

Investors were betting that the Fed would only raise rates one more time in its rate-hiking campaign.

Most Gulf Cooperation Council countries, including the UAE, have their currencies pegged to the US dollar and follow the Fed’s policy moves closely, exposing the region to the direct impact of monetary tightening in the world’s largest economy.

Dubai’s benchmark index ended its two sessions’ losses, trading 0.8% higher helped by gains in all sectors. Cooling services provider Emirates Central Cooling surged 3% and tolls operator Salik gained 1.8%.

In Abu Dhabi, the index inched up 0.2%, snapping two sessions of losses, lifted by a 2.9% climb in Adnoc Gas and a gain of 2.2% in Abu Dhabi Islamic Bank.

First Abu Dhabi Bank, the largest lender in the United Arab Emirates, added 0.5 percent.