The UAE stock markets on Thursday showed a resilient performance and bucked global trends by recording smart gains despite an increase in interest rates by the US Federal Reserves, European Central Bank (ECB) and Bank of England (BoE).
Other GCC stock markets moved in different directions as traders reacted to the decesion of Federal Reserves, ECB and BoE to increase interest rate by 50 basis points and to the developments in energy markets amid fear of economic recession after a hawkish stance from the US Federal Reserve.
Oil prices’ direction was uncertain after the Federal Reserve’s move to increase interest rate by 50 basis points while supply and demand concerns affected traders’ expectations.
“The Dubai stock market was relatively volatile with no clear direction as traders reacted to the interest rate decision of the US central bank. As a result, the main index could continue trading sideways,” said Abdelhadi Laabi, chief marketing officer at Emporium Capital.
The Dubai’s main index rose 4.38 points, or 0.13 per cent, to 3,3315.23 points as Dubai Islamic Bank and Salik shares surged two per cent and 1.23 per cent, respectively. Emaar shares dropped 2.5 per cent and Dewa fell 1.68 per cent.
In Abu Dhbai, the benchmark index staged a strong rebound and climbed 1.2 per cent to 10,144.53 points as investors showed interest in newly-listed companies. Fertiglobe shares soared 4.95 per cent to Dh4.24 while Alphadhabi and Multiply shares surged 3.95 per cent and 2.95 per cent, respectively.