Dubai’s benchmark share index surged on Tuesday to its highest level in more than a decade, while most other markets in the Gulf tracked global equities lower ahead of the U.S. Federal Reserve’s monetary policy meeting later this week.
Dubai’s benchmark stock index extended its rally to a second straight session, rising 0.6% to 5,080, its highest in 10 years and three months.
Shares of Emaar Properties were up for a second day, rising 15% to their highest in nearly 19 years, after the developer said on Monday it had planned to declare dividends at 100% of share capital for 2024 and the next few years, amounting to 8.80 billion dirhams ($2.4 billion).
The Qatari benchmark index snapped its six-session winning streak and slipped 1.1%, with almost all stocks in the red. Industries Qatar dropped 2.7% and Qatar Islamic Bank slid 1.1%.
Saudi Arabia’s benchmark stock index slipped 1.2%, with all sectors in the negative territory. Oil major Saudi Aramco dropped 1.2% and Almarai lost 4.3%.
Savola Group soared 10% after the Kingdom’s largest foods producer said on Sunday its shareholders approved the board’s proposal to reduce capital and compensate by paying 8.34 billion riyals ($2.22 billion) in the form of Almarai shares.
Dubai outperforms other Gulf markets as Fed rate decision eyed
The Abu Dhabi benchmark index was down 0.2%, pressured by losses in most sectors. Aldar Properties lost 1.1% while ADNOC Gas slid 1.2% after the natural gas producer appointed a new CEO.
Among other fallers, ADNOC Drilling was down 0.5%. The drilling unit of state-owned energy giant ADNOC, said it has formed an ‘unconventional’ energy venture with SLB, Patterson-UTI.
Meanwhile, the U.S. central bank is expected to cut rates by a quarter of a percentage point at its Dec. 17-18 meeting, which will also provide an updated look at how much further Fed officials think they will reduce rates in 2025 and perhaps into 2026.
The Fed’s decisions impact monetary policy in the Gulf, where most currencies, including the riyals, are pegged to the U.S. dollar.
Outside the Gulf, Egypt’s blue-chip index was down 0.6%, weighed down by a 2% drop in Commercial International Bank and a 3.6% fall in Abu Qir Fertilizers.
----------------------------------------- SAUDI ARABIA dropped 1.2% to 11,949 KUWAIT down 0.1% to 7,797 QATAR fell 1.1% to 10,459 EGYPT lost 0.6% to 30,602 BAHRAIN Closed OMAN up 0.3% to 4,533 ABU DHABI lost 0.2% to 9,261 DUBAI rose 0.6% to 5,080 -----------------------------------------
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