DUBAI: Most stock markets in the Gulf rebounded on Wednesday, amid rising oil prices and ahead of the outcome of the U.S. Federal Reserve’s policy meeting due later in the day.
Investors are waiting for the Fed’s announcement, during which it will announce its position regarding its monetary policy and how it intends to handle its asset purchasing program, said Wael Makarem, senior market strategist at Exness.
“Investors remain wary of any signs of monetary tightening but do not expect any radical changes.”
Oil prices climbed more than $1, extending overnight gains after industry data showed U.S. crude stocks fell more than expected last week in the wake of two hurricanes, highlighting tight supply as demand improves.
In Abu Dhabi, the index gained 0.4%, with the country’s largest lender First Abu Dhabi Bank rising 1%.
The United Arab Emirates’ economy will grow 2.1% this year and 4.2% in 2022, the central bank said on Wednesday, as the Gulf state rebounds from the coronavirus downturn.
The UAE economy benefited from a recovery in global travel and a pick up in domestic and external demand in the second quarter, the central bank said. It has also had a successful vaccination drive.
Dubai’s main share index added 0.2%, supported by a 0.7% rise in Emirates NBD Bank and a 2.6% leap in Emaar Development.
Dubai said on Monday it was establishing a new Integrated Economic Zones Authority that will act as an independent legal entity with financial and administrative autonomy.
More than 5,000 international firms will operate under the Dubai Integrated Economic Zones Authority. Economic activity regulated by the authority generates 5% of Dubai’s GDP.
Saudi Arabia’s benchmark index, however, fell for a fourth session in a row to close 0.4% lower. Al Rajhi Bank dropped 1%, while Saudi National Bank, the kingdom’s biggest lender, declined 0.8%.
The Qatari index concluded 0.3% higher, with petrochemical maker Industries Qatar climbing 2.1%.
Outside the Gulf, Egypt’s blue-chip index finished 0.9% higher, as most of the stocks on the index were in positive territory.
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