Mahmoud Jamal – Mubasher: Most of the Gulf stock exchanges rose by the end of the first week of October, tracking the impact of the rise in global stock markets and the gains in oil prices, following the “OPEC Plus” alliance agreed to reduce global supplies by reducing production targets by two million barrels per day.
Oil prices, the main catalyst for the region’s stock markets, achieved the largest weekly increase in 6 months, as Brent crude for December delivery jumped 15% to $97.92 a barrel and West Texas crude for November delivery rose 16.5% to $92.64 a barrel.
According to statistics prepared by “Mubasher Information”, the Saudi market index “TASI” jumped by 3.09% at the end of the week’s trading, the Qatar Stock Exchange index rose 2.6%, the Abu Dhabi and Dubai stock indexes rose by 2% and 1%, respectively, and the Muscat Securities Market Index increased by 0.24 %.
Mahmoud Atta, investment manager at Universal Securities Brokerage, told Mubasher Information that the Gulf stock exchanges are likely to continue to rise with the continuation of recording new increases in oil prices, which represent the largest return to the revenues of the countries of the region, noting that the recovery in oil and natural gas prices and the trend Its upward trend with the continuation of the global energy crisis qualifies the region’s stock exchanges for more gains.
He pointed out that the region’s stock exchanges may find support in the coming period from the main factors for the listed companies, most notably the business results that are approaching the announcement season for the nine-month period of this year, in addition to their news of expansions and acquisitions, noting that the markets may be subjected to rapid pressure if there is any development regarding Tightening of US monetary policies in addition to geopolitical tensions.
For her part, Asmaa Ahmed, a stock market analyst, confirmed that the continuation of the stability of oil prices above the level of $ 80 a barrel, which achieves the level of parity for the budgets of most of the Gulf markets, as a barrel of Brent crude is trading at regarding $ 97 a barrel, which supports the Gulf markets and positively affects the profitability of companies Especially oil.
Outside the region, the main index “EGX30” for the Egyptian Stock Exchange rose by 1.87% to end this week’s trading at the level of 10,010 points. Hossam Eid, an expert in financial markets, expected that the main index of the stock exchange will continue to reap more gains and target a level that exceeds 10,200 points, supported by the continued activity of the leading stocks and the tendency of Egyptian and Arab financial institutions towards buying, pointing out that in the event of profit-taking operations, the main index will go to test the 9900 points level. Thus, abandoning the 10,000 point level once more. The Egyptian Stock Exchange was closed last Thursday due to an official holiday.
The rise in the Arab stock markets during that period came in harmony with the rise of most global stock exchanges, led by “Wall Street” with the support of the improvement in risk appetite among investors. However, the rise in bets to raise interest rates strongly and monitor the repercussions of the crisis between Russia and the United States due to the increase in military operations in Ukraine may slow the pace of gains during this month’s trading.
Globally, most US stock indices recorded a weekly rise, as the broader Standard & Poor’s 500 Index increased by 1.5% to 3,639 points, and the Dow Jones Industrial Average increased by 2%, to reach 29,296 points.
The Nasdaq Composite Index of technology shares rose 0.8%, to 10,652 points. The European Stoxx 600 index gained 1% to 391 points.
And Daboura, the financial advisor, Taher Morsi, suggested that global stock markets would not continue to rise clearly during the coming period, in light of an unexpected drop in the unemployment rate and thus the continued strength of the American labor market, which supports speculations of continuing to tighten monetary policy to confront inflation.
It is noteworthy that the global stock exchanges ended last Friday’s trading with a decline, which confirms the expected fluctuations in them, as the “Dow Jones” industrial index fell by 2.1% and the “Standard & Poor’s 500” decreased by 2.8%.
The Nasdaq fell 3.8%, the European Stoxx 600 index fell 1.2%, and the German DAX fell 1.6%. In Japan, the Nikkei index fell 0.7%, and the broader Topix index fell 0.8%.
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