Stocks in the UAE could be set for further gains in the week ahead, standing to benefit further from the US Federal Reserve’s decision on Wednesday to leave US interest rates unchanged.
However, analysts have warned that dissenting voices on the Fed’s rate-setting committee, together with the prospect of a rate rise before the end of the year, may increase volatility.
MSCI’s Emerging Markets Index had its best week since mid-July last week, in the aftermath of the Fed’s announcement.
The index closed up 3.62 per cent for the week in spite of late profit-taking on Friday, as passive money flowed back into emerging markets.
Blue-chip stocks in Qatar and the UAE may stand to benefit from such flows, according to EFG Hermes.
“Passive inflows into EM could recover following the Fed’s decision,” the bank said. “We prefer to play the potential recovery in flows via UAE equities as we like the macro story and market fundamentals.”
Large companies such as Emaar Properties, Etisalat and DP World are likely to be stocks of choice in the UAE alongside Qatar’s QNB, the bank said.
The Dubai Financial Market General Market had its best day in nearly six months on Thursday, closing up 1.96 per cent at 3,513.57, with Emaar surging 2.87 per cent to Dh7.16.
The Fed’s 10-member rate setting committee said that the case for interest rates had strengthened, with three members voting for an immediate quarter per cent rise.
Such mixed messages are likely to increase volatility, according to Ana Thaker, a market economist at PhillipCapital UK.
“The notable difference [this time] is that the [committee members] are split as to the best course of action, which will make for an interesting few months ahead of the last two meetings of the year,” she said.
“We are likely to now get even more mixed messages from the Fed.”
jeverington@thenational.ae
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Transmission: Single-speed automatic
Max touring range: 620km / 590km
Price: From Dh250,000 (estimated)
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
The bio
Date of Birth: April 25, 1993
Place of Birth: Dubai, UAE
Marital Status: Single
School: Al Sufouh in Jumeirah, Dubai
University: Emirates Airline National Cadet Programme and Hamdan University
Job Title: Pilot, First Officer
Number of hours flying in a Boeing 777: 1,200
Number of flights: Approximately 300
Hobbies: Exercising
Nicest destination: Milan, New Zealand, Seattle for shopping
Least nice destination: Kabul, but someone has to do it. It’s not scary but at least you can tick the box that you’ve been
Favourite place to visit: Dubai, there’s no place like home
T20 WORLD CUP QUALIFIER
Results
UAE beat Nigeria by five wickets
Hong Kong beat Canada by 32 runs
Friday fixtures
10am, Tolerance Oval, Abu Dhabi – Ireland v Jersey
7.30pm, Zayed Cricket Stadium, Abu Dhabi – Canada v Oman
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The specs
Engine: 6.2-litre V8
Transmission: ten-speed
Power: 420bhp
Torque: 624Nm
Price: Dh325,125
On sale: Now
COMPANY PROFILE
● Company: Bidzi
● Started: 2024
● Founders: Akshay Dosaj and Asif Rashid
● Based: Dubai, UAE
● Industry: M&A
● Funding size: Bootstrapped
● No of employees: Nine