The UAE stock market witnessed a decline today, Friday, as investors await key US inflation data scheduled to be released later today for indications on future actions by the Federal Reserve regarding interest rates.
The record monthly decline in the inflation rate in the eurozone has heightened investors' expectations for similar US data. Inflation data in the eurozone showed consumer prices rising by 6.9 percent in March, after increasing by 8.5 percent in February.
Most Gulf Cooperation Council countries, including the UAE, peg their currencies to the dollar and generally adopt the same movements as the Federal Reserve, making them susceptible to direct impacts from any monetary tightening in the US.
The main index in Dubai dropped by 0.6 percent, ending three consecutive days of gains, with losses led by real estate and financial sector stocks. The index recorded quarterly gains of 2.1 percent but declined by 0.9 percent month-on-month.
Emaar Properties' shares fell by 2.1 percent, while shares of Dubai Islamic Bank and Dubai Investments dropped by 2.4 percent and 2.1 percent, respectively.
Amanat Holdings saw its shares increase by more than one percent following the announcement of the launch of its new healthcare platform, Amanat, and the commencement of preparations for an initial public offering of the new entity soon.
In Abu Dhabi, the main index lost 0.5 percent, influenced by a 1.8 percent drop in shares of First Abu Dhabi Bank, the largest bank in the country, alongside a 0.9 percent decrease in Alpha Dhabi Holding shares.
The index is heading towards recording its largest quarterly loss since the first quarter of 2020, amounting to 7.7 percent.
