Stock markets in the United Arab Emirates gained ground on Friday, driven by positive investor sentiment following favorable U.S. inflation data and expectations of a potential rate cut by the Federal Reserve. The shift in sentiment came after recent U.S. data showed that inflation is moderating, while retail spending remains strong.
Given that monetary policy in the Gulf Cooperation Council (GCC), including the UAE, typically follows the Federal Reserve due to the region’s currency pegs to the U.S. dollar, the optimism in U.S. markets positively impacted UAE equities.
In Dubai, the main share index climbed 0.6%, marking its third consecutive session of gains. Emirates NBD Bank edged up 0.3%, while Watania International Holding surged 14.3% following its quarterly profit report. However, blue-chip developer Emaar Properties dipped 1.8%.
Meanwhile, Abu Dhabi’s benchmark index also rose for the third session in a row, gaining 0.5%. This rise was led by a 0.9% increase in International Holding Company and a 2.6% gain in ADNOC Distribution. ADNOC Gas, however, fell 1.6% as it traded ex-dividend.
On a weekly basis, Dubai’s index was down 0.2%, while Abu Dhabi’s index increased by 1.4%.
