The stock markets in the UAE closed higher on Friday, as investors seemed to overlook the impact of falling oil prices, concerns over weak global economic growth, and the increasing rate hikes. Crude oil prices, a primary driver of Gulf economies, fell today, trending towards a weekly decline, with Brent crude down 91 cents, or 1.2%, to $73.23 a barrel by 11:10 AM GMT.
The Dubai index rose by 0.4%, supported by a 1.9% increase in the Dubai Electricity and Water Authority's stock and a 1.1% rise in the Emirates NBD Bank's stock, the largest bank in the emirate. The leading Emaar Properties stock also increased by 0.8%. The Dubai index recorded marginal weekly gains of 0.1%, continuing its gains for the third consecutive week.
The Abu Dhabi index rose by 0.3% for the sixth straight session, supported by a more than 1% increase in the First Abu Dhabi Bank's stock, the largest bank in the country, and a 3.1% rise in the Alpha Dhabi Holding stock. The index recorded a second consecutive weekly increase of 1.2%.
Federal Reserve Chair Jerome Powell indicated on Thursday that "the bank will move interest rates at a cautious pace, as policymakers approach a stopping point for an unprecedented tightening cycle in monetary policy."
