Gulf markets await US Federal Reserve news

In Dubai, small and mid-sized shares generated the majority of turnover, pulling the stock index up 0.4 per cent.

Share performance was mixed across the Arabian Gulf on Wednesday ahead of US Federal Reserve decision on interest rates, even as international bourses rallied on the prospect of further interventions by the Bank of Japan.

Global indexes rose on Wednesday ahead of the Fed’s decision, after the Bank of Japan said it would take interest rates into further negative territory if necessary in an attempt to battle deflation.

The Nikkei rose by 1.9 per cent, while in Europe the Euro Stoxx 50 was up by about 0.6 per cent late afternoon.

Brent crude futures traded up around $46.69 a barrel in the early afternoon, on speculation that Opec may turn informal discussions scheduled in Algeria next week into a formal session on oil production levels.

The Dubai Financial Market General Index traded slightly up for much of the day but closed 0.2 per cent lower at 3,446.08, thanks to a last-minute dip by Emaar Properties.

The developer’s stock finished 1.2 per cent lower at Dh6.96, its first sub-Dh7 close in seven weeks. Dubai Parks and Resorts and DIB also fell.

Mashreq and CBD were the pick of the gainers, rising by 10.7 per cent and 6.1 per cent in thin trading.

In the capital, the Abu Dhabi Securities Exchange General Index finished a quiet day 0.1 per cent higher at 4,470.40, on a day when just four stocks had trading volumes in excess of 2 million.

FGB was the pick of the big-name stocks, closing up 1.2 per cent at Dh11.95, offsetting a 0.2 per cent fall by fellow blue-chip Etisalat.

Saudi stocks, meanwhile, broke a three-day losing streak on Wednesday, ending the day up 0.4 per cent.

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Published: September 21, 2016 04:00 AM


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