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DFM Closes Slightly Higher

DUBAI — Dubai shares were little changed on Wednesday as investor cautiousness offset the initial enthusiasm from a significant reduction in Opec oil output and the aggressive interest rate cut by the US Federal Reserved.

The Dubai Financial Market index though snapped a three-day losing streak to end slightly higher at 0.19 per cent , buoyed by index heavyweight Emaar Properties.

Banks propped up the Abu Dhabi Securities Exchange benchmark index to inch up 0.05 per cent to 2,711.55.

“Investors eventually flocked from UAE stocks to other bourses in the region where positive overseas leads were better reflected,” said Ali Khan, executive director of Arqaam Capital.

The US Fed slashed its key interest rates to zero to 0.25 per cent from 1 per cent on Tuesday, in a bid to resuscitate its faltering economy and prevent it from going into a deeper recession.

Saudi Arabian Oil Minister Ali Al Naimi said the Organisation of Petroleum Exporting Countries will trim oil output by two million barrels a day starting in January in a bid to stem falling oil prices.

Elsewhere in the region, Kuwait followed the Federal Reserve’s lead and also cut its benchmark interest rate by half a percentage point.

The Saudi Central Bank slashed rates ahead of the Fed meet, but the UAE central bank decided to keep its interest rates steady at 1.5 per cent.

rocel@khaleejtimes.com