Abu Dhabi up as region remains mixed

The Abu Dhabi stock exchange ended higher on Thursday, helped by shares in sector majors First Abu Dhabi Bank and Etisalat, and neighbouring Dubai ended lower as property shares weighed on the exchange.

Abu Dhabi’s main index jumped 1.8 per cent, as shares in the UAE’s biggest lender FAB gained 3.3 per cent and Etisalat, one of the country’s two telecoms, rose 2.1 per cent.

The UAE Central Bank, like most Gulf counterparts, quickly followed the United States Federal Reserve decision to raise its target range for the federal funds interest rate by a quarter of a percentage point, to between 1.75 per cent and 2 per cent.

In Dubai, the index closed down 0.4 per cent as shares in flagship builder Emaar Properties shrank 0.9 per cent and shares in Damac Properties, another major Dubai developer, ended the day 1.2 per cent lower.

The UAE announced overnight another round of initiatives to stimulate economic growth, which this time included a relaxation of its visa regime for foreigners entering the country. The UAE has announced several plans targeted at boosting the economy in recent weeks, but it remains unclear what impact they will have. Energy and financial shares helped Qatar’s index rise 0.2 per cent. Qatar Gas Transport shares surged 3.2 per cent and Qatar Islamic Bank and Masraf Al Rayan each increased 1.5 per cent.

Gulf markets have been mixed this week amid muted trading and profit taking before the Eid holiday, which started this week. Trading in the Gulf is usually muted before holidays as some traders cash in shares and are generally cautious of any developments in global markets during the closure of their bourses.

Saudi Arabia’s stock exchange was closed on Wednesday and Thursday and Oman’s Muscat bourse was also closed on Thursday.

Other exchanges are scheduled to be closed for at least one day next week, including Abu Dhabi and Dubai.

Meanwhile, weak Chinese data, rising trade tensions and a more hawkish US Federal Reserve sent shivers through emerging market stocks on Thursday, but currencies bounced as the dollar weakened.