-- Stock trading in the United Arab Emirates ended Wednesday higher as the FTSE ADX General Index was up 0.668%, while the DFM General Index was little changed at 0.059% in the green.
Dominating headlines, the UAE decided to exit the Organisation of the Petroleum Exporting Countries and the wider OPEC+ on Friday following a comprehensive review of its production policy and existing and future capacity.
"OPEC and OPEC+ have only ever been as strong as the members' willingness to hold barrels back from the market, and the UAE was one of those. Losing a member with 4.8 million barrels per day of capacity, and the ambition to produce more, takes a real tool out of the group's hands," Rystad Energy head of geopolitical analysis Jorge Leon commented. "While near-term effects may be muted given ongoing disruption in the Strait of Hormuz and broader geopolitical uncertainty, the longer-term implications are more consequential."
Turning to corporate news, Fertiglobe (ADX:FERTIGLB) logged a first-quarter attributable profit and revenue growth of 173% and 32%, respectively. Its shares closed the session 10.32% in the green.
Dubai-listed Tecom Group (DFM:TECOM) closed the session 1.20% higher after reporting an increased profit and revenue for the first quarter, backed by higher occupancy rates across its commercial and industrial assets and strategic investments.
Across the pond, markets will await the release of the US Federal Reserve's interest rate verdict later in the day, and as widely expected, the federal funds rate will be kept steady in the 3.50% to 3.75% range. The Federal Open Market Committee meeting is also expected to be Fed Chair Jerome Powell's final meeting, with US President Donald Trump's nominee Kevin Warsh expected to replace him.
"There is a good chance the Fed will signal it's still too early to conclude the inflation-growth trade-off and related monetary policy implications. However, the latest signs from the Middle East are not encouraging. While Powell's signals may be taken with some caution, given that this should be his last press conference, the risks are that he errs on the hawkish side," ING said.