UAE: UAE’s stock exchanges close lower – Gulf Digital News

UAE: UAE’s stock exchanges close lower – Gulf Digital News

Stock exchanges in the UAE closed lower yesterday, tracking global equities, a day after the US Federal Reserve hiked interest rates sharply and signalled a larger rates increase in the next few months to fight inflation.

MSCI’s world stocks index fell to its lowest since mid-2020 yesterday, having lost about 12 per cent in the month or so since Fed Chair Jerome Powell made clear that bringing down inflation would hurt.

In Dubai, the main share index dropped 0.7pc, as nearly all its sectors slipped into the red and heavyweight real estate shares led the losses.

Blue-chip developer Emaar Properties fell 1.1pc and state-run utility firm Dubai Electricity And Water Authority slid 1.6pc.

The Central Bank of the UAE said on Wednesday it was hiking its base rate by three quarters of a percentage point to 3.15pc effective from Thursday, moving parallel with the Fed’s third consecutive hike of that size as its currency is pegged to the dollar.

Abu Dhabi equities slipped 0.7pc with Abu Dhabi National Energy Company declining 3pc and port operator Abu Dhabi Ports Company decreasing 1.5pc.

Abu Dhabi-based hospital operator Burjeel Holdings is seeking local investors for its planned initial public offering, two sources said, scrapping plans to seek foreign investors