Dubai’s benchmark share index jumped on Tuesday to its highest level in more than a decade, while most other markets in the Gulf were muted as investors braced for the US Federal Reserve’s monetary policy meeting.
Markets have almost completely priced in a rate cut at the conclusion of the Fed’s policy meeting on Wednesday, but the rate trajectory for next year has become less certain in light of recent US data that showed sticky inflation in a relatively robust economy.
The Fed’s decisions impact monetary policy in the Gulf, where most currencies, including the dirhams, are pegged to the US dollar.
Dubai’s benchmark stock index extended its surge 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 blue-chip developer said on Monday it had planned to declare dividends at 100% of share capital for 2024 and next few years, amounting to 8.80 billion dirhams ($2.4 billion).
The Abu Dhabi benchmark index was down 0.1% with Alpha Dhabi falling 1.1%, and Abu Dhabi Commercial Bank shedding 1%.
Dubai outperforms other Gulf markets as Fed rate decision eyed
Space42, however, climbed 4.5% after the space-tech company has signed an 18.7 billion dirham contract with the UAE government to provide secure communication services for a further 17 years beyond 2026 until 2043.
Saudi Arabia’s benchmark stock index slipped 0.6%, with almost all sectors in the red.
Al Rajhi Bank dropped 1% and Saudi Arabian Mining Co lost 1.5%.
Arriyadh Development climbed 4.4% after the developer said it has established a new real estate investment fund to develop an over 3.5 billion-riyal ($932 million) project in Riyadh.
Meanwhile, Saudi healthcare provider Almoosa Health Co set a final offer price of 127 riyals per share, implying total offering around 1.69 billion riyals ($449.85 million) and making it the second-largest IPO in the kingdom this year.
The Qatari benchmark index eased 0.1% with most sectors in the red.
Source: Brecorder
