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Most of the stock markets in the Gulf closed lower, Sunday, October 16, 2022, following oil and stock prices fell on Wall Street on Friday, while the Egyptian index outperformed following the International Monetary Fund said that “major policy issues” were resolved with the country.
The Saudi index fell 0.1 percent, affected by a 1.1 percent drop in oil giant Saudi Aramco.
Crude oil prices, a major driver of Gulf financial markets, fell more than 3 percent on Friday when fears of a global recession and weak demand for oil, especially in China, outweighed the support of the massive production cut target announced by the OPEC + group.
China, the world’s largest importer of crude oil, is battling the COVID-19 outbreak following a week-long holiday. The number of injuries in the country is low according to international standards, but the Asian country is still sticking to its policy of not recording any injuries, which casts a shadow on economic activity and demand for oil.
Outside the Gulf region, the Egyptian blue-chip index rose 2 percent, with most shares on the index rising, including Commercial International Bank, which rose 3.5 percent.
International Monetary Fund Managing Director Kristalina Georgieva said on Friday that fund officials had resolved all major policy issues with the Egyptian authorities in discussions on a new lending program.
Egypt is seeking a new package of loans during the annual meetings of the International Monetary Fund and the World Bank in Washington this week, hoping to stem a currency crisis that has restricted imports and raised market anxiety regarding repaying foreign debt.
In Qatar, the index fell 0.7 percent, extending losses from the previous session.
