Mideast Stocks: Most Gulf Equities Gain in Early Trade Ahead of Fed’s Decision

BENGALURU - Most stock markets in the Gulf tracked global peers higher on Wednesday ahead of the U.S. Federal Reserve's policy decision, while a few tepid corporate earnings weighed on the Qatari index.

The U.S central bank is widely expected to announce a 25-basis-point interest rate cut later in the day. Investors will be keen to get any details on the rate outlook, especially given that the U.S. government has been shut down for nearly a month.

Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.

The Abu Dhabi benchmark index rose 0.2% as most of its constituents posted gains. Emirates Telecommunications Group advanced 1.2% after the network provider posted a 1% gain in third quarter profit and around a 30% jump in revenue.

Saudi Arabia's benchmark stock index was up 0.2%, lifted by real estate, energy, finance and industry stocks. 

Arabian Drilling advanced 6.4% and ADES Holding climbed 6.1%. Oil and gas driller ADES said it has received resumption notices for one of its offshore contracts and several onshore contracts in the Saudi Arabia.

Dubai's benchmark stock index was up 0.1% in early trade, aided by gains in industry and utilities shares. Dubai Investments added 2.1% and Union Properties climbed 4.1% after the developer posted a 162% year-on-year increase in nine-month net profit on Tuesday.

Dubai Islamic Bank, however, slipped 1.5% as the biggest Islamic lender in the United Arab Emirates reported an 8% drop in third-quarter profit on Tuesday.

The Qatari benchmark index fell 0.3%, with most of its constituents posting losses. Qatar Gas Transport dropped 1.1% while Industries Qatar slipped 0.5%. The petrochemicals maker posted a decrease of 12.3% in nine-month net profit.