Dubai’s main stock index reached its highest level in more than a decade on Wednesday, rising 0.1% to close at 5,084 points, its highest level in 10 years and three months.
Other Gulf markets were weak as investors expected smaller interest rate cuts by the US Federal Reserve next year.
Emirates NBD Bank shares gained 1.2%, while Spinneys 1961 Supermarket Holding shares rose 1.3%. Shuaa Capital shares advanced 1.4% after its board of directors approved an agreement with one of the major creditors to restructure debt facilities worth 208 million dirhams ($56.64 million).
The main index of the Qatar Stock Exchange fell 0.6%, recording losses for the third session in a row. Qatar National Bank shares fell 0.8%, and Qatar Gas Transport shares fell 1.5%.
The Saudi index closed 0.2% lower, with Al Rajhi Bank shares falling 0.7% and MBC Group 3.3%. Red Sea International shares rose 6.5% after signing a contract worth 318.9 million riyals with Modern Construction Leaders Company.
In Abu Dhabi, the index fell 0.2 percent, ending a series of gains that lasted three sessions. International Holding shares fell 1 percent, while Alpha Dhabi Holding shares fell 0.9 percent.
Outside the Gulf region, the main Egyptian index rose 0.1%, supported by gains in Alexandria Containers (4.7%) and Elsewedy Electric (0.9%). The International Monetary Fund has reached a staff-level agreement with Egypt, which could result in the disbursement of $1.2 billion.
The Federal Reserve’s decisions regarding lowering interest rates and inflation expectations continue to influence monetary policies in the Gulf region due to the peg of currencies to the US dollar. Traders are currently anticipating around 35 basis points of easing in 2025.
