July 24, 2024
Dubai

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Stock marketplaces in the United Arab Emirates (UAE) ended higher on June 16th, 2023, as potentials grew that the Federal Reserve was nearing the end of its rate-hike cycle. The Fed’s choice to leave interest rates unaffected on June 14th, 2023, signaled that copying costs may still need to rise by as much as half a ratio point by the end of the year. This growth has had a positive influence on the stock marketplaces in Dubai and Abu Dhabi, with both bourses feeling gains.

Dubai Financial Market General Index

The Dubai Financial Market General Index closed at 3,789.13 AED on June 16th, 2023, marking a 1.47% increase. The index was buoyed by a 4.6% jump in Emaar Properties after the blue-chip developer unveiled ‘The Oasis’, a $20 billion lifestyle destination at the Burj Khalifa gala with 7,000 residential units. Other gainers included toll operator Salik, which saw a 3.9% increase in its share price. The Dubai index posted its third consecutive weekly gain of 2.5%.

Abu Dhabi Securities Exchange

In Abu Dhabi, the index (FTFADGI) concluded 0.7% advanced, with Bourgeon Group (MULTIPLY.AD) expanding 0.6%. The index posted its first weekly gain of 0.8% in seven weeks. According to Ahmed Negm, Head of Market Research MENA at XS.com, the Abu Dhabi bourse recovered to a certain extent from the lows of this month but remained exposed to some uncertainty. He added that the market could continue to react to developments in the oil market as expectations remained volatile to a certain extent.

Impact of Federal Reserve’s Decision on Gulf Currencies

Most Gulf moneys are pegged to the US dollar, and any monetary policy alteration in the United States is usually imitated by Saudi Arabia, the United Arab Emirates, and Qatar. The Federal Reserve’s decision to leave attention rates unchanged has had a positive influence on the stock marketplaces in the UAE, with both Dubai and Abu Dhabi feeling gains.

Stock Market Return in Dubai

The standard value for the United Arab Emirates concluded the epoch was 9.98 percentage, with a least of -36.78 percentage in 2003 and a highest of 112.76 ratios in 1998. The modern value for 2021 is 45.44 percent. This shows that the stock market in Dubai has experienced significant development over the years, with the recent gains in the Dubai Financial Marketplace General Index and the Abu Dhabi Sanctuaries Exchange further contributing to this development.

Conclusion

The stock markets in Dubai and Abu Dhabi have experienced knowledgeable gains following the Federal Reserve’s conclusion to leave interest rates unchanged. This expansion has had a confident impact on the stock markets in the UAE, with both bourses facing gains. As the Federal Reserve signals the end of its rate-hike cycle, it will be stimulating to see how the stock marketplaces in the UAE continue to progress in the coming years.

Summary:

Stock markets in the United Arab Emirates (UAE), specifically in Dubai and Abu Dhabi, recorded gains after signals from the Federal Reserve suggested the end of its rate-hike cycle.

The decision to leave interest rates unchanged led to an expectation of increased borrowing costs by the end of the year, positively influencing the stock markets. The Dubai Financial Market General Index increased by 1.47%, with a significant boost from Emaar Properties’ announcement of a new $20 billion project. Meanwhile, the Abu Dhabi index saw a 0.7% increase, marking its first weekly gain in seven weeks. As most Gulf currencies are pegged to the US dollar, any change in the US’s monetary policy affects the region, resulting in a favorable impact on the UAE’s stock markets.

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