Emirati Equities Close Mixed as US Inflation Cools
Stock trading in the United Arab Emirates ended in the opposite direction on Wednesday as the FTSE ADX General Index lost 0.211%, while the DFM General Index added 0.346%.The US inflation print for June came in softer-than-expected as headline CPI fell 0.4% monthly and grew 3.5% on an annual basis. Core CPI, on the other hand, remained flat for the month and rose 2.6% year over year."In light of today's lower inflation figures, which are the last important data point before the 29 July Fed meeting, it is highly likely that the US central bank will keep the key interest rate at 3.50-3.75%. For the rest of the year however, much will depend on future developments in the Middle East and energy prices. Nevertheless, we believe that both Trump and Iran are interested in de-escalation. This would eliminate the need for the Fed to raise the key interest rate this year," Berenberg said.On the oil front, shipping through the Strait of Hormuz remained stalled amid the continued exchange of attacks between the US and Iran. The US resumed its blockade of Iranian ports on Tuesday, while Iran's Islamic Revolutionary Guard Corps vowed to close more waterways in retaliation.Zooming in at home, the Dubai Multi Commodities Centre, or DMCC, partnered with Botswana Stock Exchange Group to support the trade of Botswana-based commodities in the international market under a signed memorandum of understanding.On the corporate side, shares of Sharjah Islamic Bank (ADX:SIB) closed the session 1.03% higher as FAB Securities affirmed its buy rating with a price target of 3.85 Emirati dirhams after its second-quarter net profit growth exceeded the financial services company's estimates.Dubai Islamic Bank (DFM:DIB) recorded a higher attributable net profit of 3.57 billion dirhams, driven by growth in both funded and non-funded income streams. Its shares were 0.79% in the green at the time of closing.
