UAE Stocks Closed Mixed Amid Central Bank Rate Hold
Stock trading in the United Arab Emirates closed on both sides of the spectrum on Thursday, with the FTSE ADX General Index adding 0.399% and the DFM General Index little changed at 0.08% in the red at the close of trading.The UAE Central Bank on Wednesday kept the base rate applicable to the overnight deposit facility unchanged at 3.65%, while also maintaining the interest rate applicable to borrowing short-term liquidity at 50 basis points above the base rate for all standing credit facilities.The financial regulator's decision was in line with the US Fed's move to keep the federal funds rate steady, as the Emirati dirham is pegged to the US dollar."The Federal Open Market Committee (FOMC) voted 9 to 3 to keep the federal funds rate at 3.50% to 3.75%. President Warsh struck a hawkish tone by repeatedly emphasising that inflation had remained above two per cent for too long. However, he was not among the three FOMC members who voted in favour of a 25bp increase," Berenberg said. "We reiterate our call that if tensions in the Middle East ease, as we anticipate in our base case scenario, the Fed will not need to increase its key interest rate. However, under Warsh, the risk of a surprise has increased significantly."Meanwhile, geopolitical risks remained in focus as the US Central Command launched another round of strikes on Islamic Revolutionary Guard Corps' command centers, missile and drone facilities, and defense sites in Iran in response to the latter's ballistic missile strikes on US forces in the Middle East.Back home, the UAE Capital Market Authority's board approved the removal of 15 fees to reduce costs and enhance regulatory services provided to licensed companies and individuals operating in capital markets.Over to corporates, Adnoc Drilling (ADX:ADNOCDRILL) logged a higher first-half attributable profit of $701.9 million, backed by a 4% year-over-year revenue growth, but closed the session flat. NMDC Group's (ADX:NMDC) attributable profit for the period fell 5%, with its stocks managing to close the session 3.23% in the green.Dubai-listed Tecom Group's (DFM:TECOM) profit and revenue for the six months ended June 30 jumped 9% and 11% respectively, due to higher occupancy and improved rental rates. Shares of the business district developer gained 1.80% at the time of closing.
