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Gulf shares were mixed on Wednesday as investors exercised caution ahead of the U.S. Federal Reserve's last policy announcement of the year after economic data indicated consumer spending remained solid.
The U.S. central bank is widely expected to deliver a 25-basis-point interest rate cut at the end of its meeting later in the day, but the focus will be on how much further Fed officials think they will reduce rates in 2025.
The Fed's decisions impact monetary policy in the Gulf, where most currencies, including the dirham, are pegged to the U.S. dollar.
Shares in Dubai <.DFMGI> slipped 0.8% after the benchmark stock index hit its highest in more than a decade for two straight sessions. Emirates NBD <ENBD.DU>, Dubai's largest lender, dropped 4.5% and Emaar Properties <EMAR.DU> lost 2.8%.
Saudi Arabia's benchmark stock index <.TASI> bounced back from losses in the previous session, inching up 0.1%. Oil major Saudi Aramco <2222.SE> rose 1.1%, while Savola Group <2050.SE> surged 10% to hit an eight-month high.
The Kingdom's largest foods producer, Savola, said on Sunday its shareholders had approved the board's proposal to reduce capital and compensate the eligible shareholders by paying 8.34 billion riyals ($2.22 billion) in the form of Almarai shares.
Meanwhile, Saudi Arabia's crude oil exports in October rose to their highest level in four months.
The Abu Dhabi benchmark index <.FTFADGI> was up 0.3%, lifted by gains in most sectors. Conglomerate Alpha Dhabi Holding <ALPHADHABI.AD> climbed 5.6%, while Ghitha Holding <GHITHA.AD> rose 4%.
The food and beverage giant Ghitha said on Tuesday it has amicably scrapped the deal to acquire a 44% stake in MNG Havayollari ve Tasimacilik A.S.
Outside the Gulf, Egypt's blue-chip index <.EGX30> was down 0.3%, with most constituents posting losses. Talaat Moustafa Group <TMGH.CA> dropped 1.4% and EFG Holding <HRHO.CA> slid 2.5%.
"While investors await the Fed's decision, concerns remain that a hawkish outlook could strengthen the U.S. dollar, which may put additional pressure on the Egyptian pound, said George Pavel, general manager at Naga.com Middle East.
"This currency dynamic could negatively impact market sentiment".
SAUDI ARABIA | <.TASI> up 0.1% to 11,961 |
KUWAIT | <.BKP> gained 0.1% to 7,802 |
QATAR | <.QSI> Closed |
EGYPT | <.EGX30> lost 0.3% to 30,503 |
BAHRAIN | <.BAX> was down 0.2% to 2,005 |
OMAN | <.MSX30> dropped 1.4% to 4,470 |
ABU DHABI | <.FTFADGI> up 0.3% to 9,293 |
DUBAI | <.DFMGI> fell 0.8% to 5,037 |
($1 = 3.7573 riyals)
(Reporting by Md Manzer Hussain; Editing by Shilpi Majumdar)