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 extended its gain to a second straight session, rising 0.1% to 5,084, its highest in 10 years and three months. Emirates NBD rose 1.2% and supermarkets operator Spinneys 1961 Holding advanced 1.3%.
Shuaa Capital 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 slipped for a third straight session and ended 0.6% lower, with almost all stocks in the red. Qatar National Bank, the region’s largest lender, fell 0.8% and Qatar Gas Transport dropped 1.5%.
Saudi Arabia’s benchmark stock index was down 0.2%, with most of its constituents posting losses. Al Rajhi Bank fell 0.7% and media giant MBC Group slipped 3.3%.
Red Sea International climbed 6.5% after the developer said on Tuesday it had saidned 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 snapped its three-session winning streak and fell 0.2%, pressured by a 1% decline in conglomerate International Holding and a 0.9% loss in Alpha Dhabi Holding.
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 edged up 0.1%, aided by a 4.7% rise in Alexandria Container and a 0.9% gain in El Sewedy Electric.
The International Monetary Fund reached a staff-level agreement with Egypt, potentially unlocking a $1.2 billion disbursement.
SAUDI ARABIA down 0.2% to 11,892
KUWAIT up 0.3% to 7,866
QATAR fell 0.6% to 10,466
EGYPT up 0.1% to 30,005
BAHRAIN down 0.1% to 1,985
OMAN lost 0.1% to 4,488
ABU DHABI fell 0.2% to 9,415
DUBAI rose 0.1% to 5,084
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