Dec 18 (Reuters) - Most stock markets in the Gulf fell 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 riyals, are pegged to the U.S. dollar.
Shares in Dubai slipped 0.8%, with most sectors trading in negative territory, after the benchmark stock index hit its highest in more than a decade for two straight sessions.
Emirates NBD, Dubai's largest lender, dropped 2.8% and Emaar Development lost 4%.
Saudi Arabia's benchmark stock index was down 0.1%, pressured by losses in almost all sectors.
Al Rajhi Bank, the world's largest Islamic lender, fell 0.5% and Saudi Arabian Mining Co shed 0.6%.
Savola Group surged 10% in its second session of gain and hit its highest level in nine months. The Kingdom's largest foods producer said on Sunday its shareholders had approved the board's proposal to reduce capital and compensate by paying 8.34 billion riyals ($2.22 billion) in the form of Almarai shares.
The Abu Dhabi benchmark index was up 0.2%, with Alpha Dhabi rising 3.71% and Multiply Group adding 1.6%.
ADNOC Drilling was down 1.3%. The drilling unit of state-owned energy giant ADNOC said on Tuesday it had formed an 'unconventional' energy venture with SLB and Patterson-UTI.
($1 = 3.6727 UAE dirham)
Reporting by Md Manzer Hussain; Editing by Subhranshu Sahu
Source: Reuters