Aug 16 (Reuters) – Stock markets in the United Arab Emirates (UAE) advanced on Friday, driven by positive investor sentiment following encouraging U.S. inflation data and expectations of a Federal Reserve rate cut.
The shift in sentiment came after U.S. data earlier in the week showed inflation easing while retail spending remained strong. The Gulf Cooperation Council (GCC), including the UAE, often aligns its monetary policies with the U.S. Federal Reserve due to the pegging of most regional currencies to the U.S. dollar.
Amid ongoing geopolitical concerns, negotiators were set to meet in Qatar on Friday to discuss a potential ceasefire in Gaza, which could help prevent further regional escalation, end a conflict that has claimed many lives, and secure the release of Israeli hostages held by Hamas.
In Dubai, the main share index (.DFMGI) rose by 0.6%, marking its third consecutive session of gains. Emirates NBD Bank (ENBD.DU) edged up 0.3%, while Watania International Holding (WATANIA.DU) surged 14.3% after reporting a quarterly profit on Thursday. However, blue-chip developer Emaar Properties (EMAR.DU) declined by 1.8%.
Abu Dhabi’s benchmark index (.FTFADGI) also recorded its third session of gains, increasing by 0.5%. International Holding Company (IHC.AD) rose by 0.9%, and ADNOC Distribution (ADNOCDIST.AD) gained 2.6%. However, ADNOC Gas (ADNOCGAS.AD) fell by 1.6% as the stock traded ex-dividend.
For the week, Dubai’s index dipped by 0.2%, while Abu Dhabi’s index climbed by 1.4%.
