UAE Stock Markets Rise as Investors Bet on Fed Rate Hike Cycle
Oil Surges Above $81 a Barrel After Supply Disruptions in Libya and Nigeria
UAE stock markets rose today, Friday, as investors bet that the Federal Reserve (the US central bank) is nearing the end of its rate hike cycle and oil surged above $81 a barrel after supply disruptions in Libya and Nigeria.
Yesterday, Thursday, a number of oil fields in Libya were closed as a local tribe protested against the kidnapping of the former minister. Shell has also suspended shipments of Nigerian crude oil due to a potential leak at the terminal.
Brent rose to $81.40 a barrel by 1148 GMT, according to Reuters.
GCC Countries Vulnerable to Impact of Monetary Tightening in the US
Most GCC countries, including Qatar, Saudi Arabia, and the UAE, peg their currencies to the US dollar and follow in the footsteps of US central bank monetary policy, making the region vulnerable to the direct impact of monetary tightening in the world’s largest economy.
The Abu Dhabi Market Index rose 0.5% for the third consecutive session, supported by a 0.9% gain in First Abu Dhabi Bank, the UAE’s largest bank, and a 1.8% gain in Etisalat Group shares.
The Dubai Market Index rose by 0.1%, mainly due to the growth of financial and industrial shares, with the share of the emirate’s largest bank, Emirates NBD Bank, increasing by 0.6%, and the share of Tecom Group, which operates a business park, increased by more than 1%.
The Abu Dhabi index rose 0.7% and the Dubai index rose 1.2% on the week.
