United Arab Emirates stock markets closed higher, tracking an upward trend in global equities. The market surge followed a cooler-than-expected U.S. jobs report, which reduced fears of an immediate Federal Reserve interest rate hike and increased expectations that interest rates will remain on hold.
Because most Gulf currencies are pegged to the U.S. dollar, changes in American monetary policy deeply impact regional markets.
Dubai Market Performance
Dubai’s main index rebounded with a 1.1% gain, heavily supported by the industrial and financial sectors. Over the course of the week, the index added 0.7%.
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Salik Company (Toll-gate operator): Jumped 2.4%
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Emaar Properties (Blue-chip developer): Advanced 1.5%
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Emirates NBD Bank (Top lender): Advanced 1.5%
Separately, Emirates Global Aluminium announced it is restoring production ahead of schedule at its Al Taweelah complex following damage from Iranian missile strikes earlier in the year. However, returning to previous hot metal output levels may take up to a year.
Abu Dhabi Market Performance
Abu Dhabi’s benchmark index finished 0.9% higher, securing its second consecutive winning session. It closed out the week up 0.2%.
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Alpha Dhabi Holding: Climbed 4.3%
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Aldar Properties: Rose 1.2%
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International Holding Company (IHC): Gained 0.6%
IHC’s upward movement follows the announcement of a massive $11.5 billion investment plan. The UAE’s largest listed company by market value is partnering with India’s Adani Group to build an integrated aluminium project in the eastern Indian state of Odisha.
