Stock markets in United Arab Emirates declined on Friday, in line with global equities after a bigger-than-expected hike in U.S. inflation dashed hopes of early rate cut.
MSCI’S global equity index was down 0.2%, while Hong Kong’s Hang Seng Index slid 1.4%.
The mood turned cautious after a bigger-than-expected rise in producer prices in U.S. data on Thursday added to a hot consumer inflation reading earlier in the week.
Monetary policy in the six-member Gulf Cooperation Council is usually guided by Fed policy since most regional currencies are pegged to the U.S. dollar.
Abu Dhabi’s benchmark index dropped 0.4%, breaking two sessions’ gains, weighed down a 6.5% decline in UAE’s third largest lender Abu Dhabi Commercial Bank, while IHC-owned investment firm Multiply Group lost 2.2%.
However, National Corp For Tourism And Hotels jumped 2.8% after the firm offered to acquire entire stake held by Alpha Dhabi Holding’s subsidiaries in ADH Hospitality, Murban (BVI) Holding And Hill View Resorts (Seychelles).
Alpha Dhabi Holding shares closed 0.4% up.
Oil price - a key catalyst for Gulf’s financial markets - was 0.4% down to $85.06 a barrel by 1116 GMT.
Gulf markets rise on higher oil prices; US data in focus
Dubai’s main index settled 0.7% lower, snapping three sessions of a rally, dragged down by a 1.9% decrease in Dubai Islamic Bank and a 5.6% drop in Emaar Development.
However, Union Properties surged 10.3%, hitting over 5-months high after Dubai Financial Market transferred company’s listing to first category from second category.
Separately, Dubai’s Parkin, which oversees public parking operations in the Emirates, has raised 1.57 billion dirhams ($427.5 million) after pricing its IPO at the top of its range at 2.1 dirhams per share on Thursday. Parkin is expected to start trading on March 21.
================================== ABU DHABI down 0.4% to 9,221 DUBAI lost 0.7% to 4,262 ==================================
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