Gulf equities end mixed; Fed rate outlook in focus
By Md Manzer Hussain
Dec 18 (Reuters) -Gulf shares were mixed on Wednesday as investors exercised caution ahead of the U.S. Federal Reserve's last policy announcement of the year after economic data indicated consumer spending remained solid.
The U.S. central bank is widely expected to deliver a 25-basis-point interest rate cut at the end of its meeting later in the day, but the focus will be on how much further Fed officials think they will reduce rates in 2025.
The Fed's decisions impact monetary policy in the Gulf, where most currencies, including the dirham, are pegged to the U.S. dollar.
Shares in Dubai .DFMGI slipped 0.8% after the benchmark stock index hit its highest in more than a decade for two straight sessions. Emirates NBD ENBD.DU, Dubai's largest lender, dropped 4.5% and Emaar Properties EMAR.DU lost 2.8%.
Saudi Arabia's benchmark stock index .TASI bounced back from losses in the previous session, inching up 0.1%. Oil major Saudi Aramco 2222.SE rose 1.1%, while Savola Group 2050.SE surged 10% to hit an eight-month high.
The Kingdom's largest foods producer, Savola, said on Sunday its shareholders had approved the board's proposal to reduce capital and compensate the eligible shareholders by paying 8.34 billion riyals ($2.22 billion) in the form of Almarai shares.
Meanwhile, Saudi Arabia's crude oil exports in October rose to their highest level in four months.
The Abu Dhabi benchmark index .FTFADGI was up 0.3%, lifted by gains in most sectors. Conglomerate Alpha Dhabi Holding ALPHADHABI.AD climbed 5.6%, while Ghitha Holding GHITHA.AD rose 4%.
The food and beverage giant Ghitha said on Tuesday it has amicably scrapped the deal to acquire a 44% stake in MNG Havayollari ve Tasimacilik A.S.
Outside the Gulf, Egypt's blue-chip index .EGX30 was down 0.3%, with most constituents posting losses. Talaat Moustafa Group TMGH.CA dropped 1.4% and EFG Holding HRHO.CA slid 2.5%.
"While investors await the Fed's decision, concerns remain that a hawkish outlook could strengthen the U.S. dollar, which may put additional pressure on the Egyptian pound, said George Pavel, general manager at Naga.com Middle East.
"This currency dynamic could negatively impact market sentiment".
SAUDI ARABIA | .TASI up 0.1% to 11,961 |
KUWAIT | .BKP gained 0.1% to 7,802 |
QATAR | .QSI Closed |
EGYPT | .EGX30 lost 0.3% to 30,503 |
BAHRAIN | .BAX was down 0.2% to 2,005 |
OMAN | .MSX30 dropped 1.4% to 4,470 |
ABU DHABI | .FTFADGI up 0.3% to 9,293 |
DUBAI | .DFMGI fell 0.8% to 5,037 |
($1 = 3.7573 riyals)
Reporting by Md Manzer Hussain; Editing by Shilpi Majumdar
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