The decline in oil prices lowers most of the Gulf stocks, and the Egyptian Stock Exchange is rising
Most Gulf stock markets closed lower on Monday following oil prices hit their lowest levels since 2021, on concerns that banking problems might exacerbate recession risks.
Crude oil prices, a major catalyst for Gulf financial markets, fell 1.1% today and Brent crude fell to $72.16 by 12:30 GMT.
Central banks’ pledges at the beginning of the week to provide dollar liquidity failed to calm investors’ concerns regarding the instability of the financial system and the banking sector.
The Qatari index fell 1.3%, continuing its series of losses for the seventh session, and the shares of the financial and industrial sectors were the biggest losers.
Qatar National Bank, the largest in the region, fell 2.4%, Qatar Islamic Bank (Al Masraf) 3.2%, and Commercial Bank 2.2%.
The Abu Dhabi index fell 1.1%, affected by a 3.2% decline in the share of the International Holding Company, and a 1.8% drop in the share of Abu Dhabi National Energy.
Abu Dhabi Islamic Bank and Abu Dhabi Commercial Bank lost 3.1% and 0.6%, respectively. The Dubai index fell 0.2%, affected by losses in the utilities, industry and financial sectors.
The share of the real estate developer, Emaar Development, fell 2.9%, and the share of the Emirates Corporation for Central Cooling Systems (Empower) fell 1.9%.
“Gulf stock markets have come under pressure as concerns regarding the western banking sector continue to grow, and this might severely affect the expectations of oil traders and push prices lower,” said Daniel Taqi Eldin, CEO of the Middle East and North Africa at BD Suisse.
The Saudi index closed up 0.8%, extending its gains for the second session in almost all sectors. The share of Al-Rajhi Bank rose 1.4%, and the share of the National Bank of Saudi Arabia rose 3.9%.
The National Bank of Saudi Arabia, the largest lender in the kingdom in terms of assets, said today, Monday, that its growth strategy will not be affected by the reduction in its investment in Credit Suisse following the acquisition of UBS Bank yesterday.
Outside the Gulf region, the Egyptian blue-chip index rose 1.7% following losses over six sessions. The shares of the Commercial International Bank and e-Finance rose 1% and 6.1%, respectively.
(Archyde.com)
