Gulf stocks cheer Fed decision to keep interest rates put

Stocks in the Gulf surged Thursday, taking their cue from global shares after the Federal Reserve left U.S. interest rates unchanged and indicated a slower pace of future hikes.

Dubai’s main index was the top gainer among its regional peers, jumping 2.0 percent in the most active trade of the week as nine-tenths of the traded shares rose.

Emaar Properties, the largest listed developer and Dubai Investments each gained 2.9 percent.

In neighbouring Abu Dhabi, the index advanced 1.0 percent with gainers outnumbering losers by 12 to five.

Abu Dhabi National Energy was the second top gainer, soaring 8.0 percent as Brent futures bounced above $47 a barrel as the dollar — the currency in which the commodity trades — was knocked down.

But Dana Gas fell 1.7 percent after it said on Thursday its board had discussed a proposal to buy back shares in the company. The company also expressed its “dissatisfaction with the non-payment of the company’s outstanding dues in Egypt” without elaborating.

Qatar’s main index rose 1.6 percent with three-quarters of the shares advancing, trimming its loss for a volatile week to 1.2 percent.

Some of the chief gainers were this week’s new entrants to the FTSE’s secondary emerging market index. Qatar Insurance jumped 3.1 percent and Doha Bank climbed 3.3 percent.

Saudi Arabia’s stock market was closed on Thursday in observance of the kingdom’s national day holiday. It will resume trade on Sunday Sept. 25.

THURSDAY’S HIGHLIGHTS

QATAR

* The index added 1.6 percent to 10,413 points.

DUBAI

* The index gained 2.0 percent to 3,514 points.

ABU DHABI

* The index rose 1.0 percent to 4,515 points.

EGYPT

* The index added 0.3 percent to 7,914 points.

BAHRAIN

* The index was flat at 1,134 points.

OMAN

* The index added 0.3 percent to 5,766 points.

Source: Reuters