Abu Dhabi securities exchange rises ahead of Federal Reserve Chairman's speech
Date
8/25/2024 9:18:46 AM
(MENAFN) The Abu Dhabi stock exchange index closed higher on Friday, buoyed by market anticipation of a significant speech by Jerome Powell, Chairman of the US Federal Reserve. The market expects the Fed to announce an interest rate cut next month, following recent hints from three Fed officials who expressed support for a gradual approach to easing monetary policy. Given that the currencies of the six Gulf Cooperation Council (GCC) countries, including the UAE, are largely pegged to the dollar, their monetary policies are often influenced by the Fed's decisions.
In a volatile trading session, the Abu Dhabi index ended 0.4 percent up, with gains supported by a 0.1 percent rise in International Holding and a 0.2 percent increase in its subsidiary Alpha Dhabi Holding. Additionally, NMDC (formerly National Marine Dredging Company) saw a notable 3.4 percent increase following the announcement of a USD200 million contract for offshore dredging work with the Abu Dhabi National Oil Company (ADNOC) for a liquefied natural gas (LNG) project. Oil prices, a crucial driver for Gulf financial markets, also contributed to positive sentiment, with Brent crude rising 1 percent to USD77.99 a barrel as fuel supply concerns eased amidst ongoing ceasefire talks in Gaza.
Conversely, the Dubai Financial Market index experienced a decline of 0.4 percent, reversing gains from the previous three sessions. This drop was influenced by a 1.4 percent decrease in Emaar Properties' shares and a 5.5 percent fall in Commercial Bank of Dubai's stock. On a weekly basis, the Abu Dhabi Stock Exchange index increased by 1 percent, while the Dubai Stock Exchange index rose by 1.2 percent, reflecting overall positive trends despite Friday's setbacks.
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