Sept 13 (Askume) – United Arab Emirates (UAE) stocks rose on Friday, mainly led by gains in the financial sector, as investors expected the Federal Reserve to cut interest rates sharply next week.
Monetary policy in the Gulf Cooperation Council (GCC), which includes the UAE, generally follows the Fed’s decisions, as most regional currencies are pegged to the US dollar.
When the Fed makes interest rate decisions, GCC central banks typically replicate the changes to maintain currency stability and avoid large capital outflows that could disrupt their economies.
In Dubai, the main stock index (DFMGI) rose 0.9%, Dubai’s biggest bank Emirates National Bank (ENBD.DU) gained 1.8% and Dubai Islamic Bank (DISB.DU) added 0.2%.
Shares in travel solutions provider Dubai Taxi Company (DTC.DU) rose 2.3% after the company announced it had secured 300 new licence plates in the latest auction organised by Dubai’s Roads and Transport Authority (RTA).
The Abu Dhabi Stock Index (FTFADGI) rose 0.5%, with key sectors leading the gains. Notably, shares of the country’s largest bank , First Bank of Abu Dhabi (FAB.AD), rose 1.8%, and shares of telecommunications company E&E (formerly Etisalat) rose 1.5%.
