UAE markets gain on rate cut optimism

Stock markets in the United Arab Emirates closed higher on Friday with Dubai outperforming its regional peers as tame U.S. inflation data and expectations of future Federal Reserve rate cuts ignited market optimism.

U.S. inflation data, which had been delayed due to the government shutdown, showed consumer prices increased slightly less than expected in September.

The Fed is expected to cut rates by 25 basis points at its meeting next week.

Policy shifts in the U.S. often sway Gulf markets where most currencies including the UAE’s, are pegged to the dollar.

Dubai’s main index advanced 0.8%, nearing a two-month high, boosted by gains in heavyweight real estate stocks.

Blue-chip developer Emaar Properties jumped 2.8% and its construction arm Emaar Development surged 4.6% after Emaar unveiled Dubai mansions at Emaar Hills, a 100 billion dirham ($27 billion) community of 40,000 ultra-luxury homes.

Among the gainers, Ajman Bank rose 2.9% following a 82% growth in its third-quarter net profit to 134.9 million dirhams.

Abu Dhabi’s benchmark index edged up 0.1%, supported by a 2.3% rise in Adnoc Logistics & Services and a 1.9% increase in energy infrastructure firm NMDC Energy .

Abu Dhabi Ports Company surged 5.6% to an 8-month high, as its supply-chain management arm Noatum Logistics signed a preliminary agreement with Hafeet Rail to establish a new rail service between Sohar in Oman and Abu Dhabi in the UAE.

Dubai’s index notched up 1.2% on a weekly basis, while Abu Dhabi recorded 0.8% weekly gains, according to data compiled by LSEG.

Meanwhile, oil prices, a key catalyst for Gulf’s financial markets – extended gains on Friday as U.S. sanctions on Russia’s two biggest oil companies over the war in Ukraine fuelled supply concerns.

Brent crude was up 0.76% at $66.49 a barrel by 1150 GMT.

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ABU DHABI	 gains 0.1% to 10,202

DUBAI        up 0.8% to 6,066

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