UAE stock market investors cautious ahead of Fed meet

Saudi Basic Industries was up 1.8 per cent as Brent oil rose to a five-month peak of $46.49 a barrel overnight. The main Saudi stock index added 0.7 per cent.

UAE shares failed to capitalise on a fresh increase in oil prices on Wednesday, as investors trod nervously ahead of the US Federal Reserve meeting.

Brent crude futures rose to a fresh high for the year on Wednesday, hitting the US$47 per barrel mark for the first time since November, before retreating slightly to trade at $46.75 in the late afternoon.

The rise in oil prices, prompted in part by a surprise reduction in US stockpiles, led to shares in Saudi Arabia gaining by 0.9 per cent, at 6,820.3.

Sentiment was more muted in the UAE. Dubai's headline index ended the day 1.5 per cent lower at 3,506.95, ahead of the Fed's meeting on interest rates last night.

“Even with oil prices going up, people are quite cautious and are content to take some profits before the Fed decision,” said Tariq Qaqish, the managing director of asset management at Al Mal Capital in Dubai.

Shares in Dubai Islamic Bank ended the day down 3.5 per cent lower, despite DIB reporting better-than-expected first-quarter profit and announcing plans to raise Dh3.6 billion via a share issue.

Emaar Properties fell by 1.7 per cent to Dh6.67 as the stock went ex-dividend.

Shares in the capital were almost unchanged, with trading in ADCB and NBAD suspended ahead of the release of their first-quarter results.

The Abu Dhabi Securities Exchange General Index closed up by 0.07 per cent at 4,588.20, with Agthia and Dana Gas the pick of the big-name gainers. FGB, the index's heaviest weighted stock, ended the day unchanged at Dh13.10, ahead of the bank announcing a 6 per cent drop in first-quarter net profit.

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