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Dec 9 (Reuters) – Dubai shares ended higher on Friday in choppy trade ahead of a U.S. Federal Reserve meeting next week, while Abu Dhabi’s index fell for a fourth straight session on price corrections.
Federal Reserve policymakers meet next week and are likely to announce a 50 basis point hike in the Fed’s lending rate, while signaling a slower pace of future rate hikes.
Most GCC countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the dollar and closely monitor the Fed’s policy moves, exposing the region to the immediate impact of monetary tightening in the world’s largest economy.
major stock index (.DFMGI) Dubai added 0.3% in a volatile trade, ending three sessions of losses, helped by a 1.7% drop in utility Dubai Electricity and Water Authority (DEWAA.DU).
Emporium Capital Chief Operating Officer Robert Woolfe said the Dubai Stock Exchange remained volatile, while traders remained cautious ahead of the Fed meeting.
“Meanwhile, major indexes are likely to remain around current levels.”
In addition, the United Arab Emirates issued a decree imposing corporate tax Taxable business income above AED 375,000 (US$ 102,000) is taxed at 9%.
The tax will apply to all companies from June. 1 next year, it added.
In Abu Dhabi, the index (.FTFADGI) It was down 0.2 percent along with First Abu Dhabi Bank, the country’s largest lender (FAB.AD) down 0.8%.
The index, which hit a record high in mid-November, fell 6% for the second week in a row.
Oil prices – the main catalyst for financial markets in the Gulf region – held steady, but both benchmarks posted weekly losses as concerns over a weaker economic outlook in China, Europe and the United States weighed on oil demand.
The Brent crude futures contract fell about 10% on a weekly basis, its biggest weekly loss since August.
By Ateeq Shariff from Bengaluru
Our standards: Thomson Reuters Trust Principles.
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