DUBAI: Gulf equities edged lower on Tuesday in volatile trade as investors digested regional interest rate cuts following the US Federal Reserve’s move, while lingering uncertainty over the Fed’s policy outlook kept sentiment cautious.
The Fed trimmed its benchmark rate by a quarter percentage point last week in response to a softening labour market, but signalled a measured approach to further easing, leaving investors in doubt about the pace of future moves.
Subsequently, the central banks of Saudi Arabia, the United Arab Emirates, and Qatar each cut rates by 25 basis points.
Dubai’s main share index retreated 1.1 percent after witnessing two days of strength. Most sectors closed in negative territory, led by a 3.7 percent decline in toll operator Salik .
Emaar Properties fell 1.4 percent, ending a three-day winning streak, while Emirates NBD Bank declined by 2.4 percent.
National Central Cooling, better known as Tabreed, slipped 1.7 percent ahead of its ex-dividend date.
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