The Dubai and Abu Dhabi stock exchanges declined on Friday, following a drop in oil prices after Federal Reserve Board member Christopher Waller stated that "interest rate cuts should be postponed." Waller indicated on Thursday that policymakers at the central bank should delay interest rate cuts for at least two more months to determine whether the recent rise in inflation signifies a setback in the progress towards price stability or is merely a temporary disturbance.
Oil prices fell by 1.21% to $82.66 per barrel. Most Gulf Cooperation Council countries, including the UAE, peg their currencies to the dollar and closely follow the monetary policy movements of the U.S. Federal Reserve.
The main index of the Abu Dhabi Stock Exchange dropped by 0.4%, marking its lowest level in nearly four months, influenced by a 5.5% decline in shares of the investment company Multiplay, owned by International Holding Company, while shares of Q Holding, owned by ADQ, fell by 4%.
The main index of Dubai also decreased by 0.1%, with most stocks trading in the red. Emirates NBD shares fell by 1.9% and shares of Dubai Electricity and Water Authority (DEWA), which is state-owned, decreased by 0.8%. According to data from the London Stock Exchange Group, the Abu Dhabi index recorded a weekly loss of 1.6%, marking its largest weekly decline since October 20 of last year, while the Dubai index fell by 0.8% on a weekly basis.
