Amidst anticipation of the Fed Chairman’s speech, the region’s markets are in the red

2023-11-09 16:07:24
Saudi Market

Most stock markets in the Gulf region closed lower on Thursday, as traders awaited statements by US Federal Reserve Chairman Jerome Powell to extract more evidence on the potential path of interest rates.

The markets sensed that Powell’s tone had become less stringent following the US Central Bank’s report on keeping interest rates stable last week, but he did not comment on the prospects for monetary policy or the economy in the United States in a speech he delivered yesterday, Wednesday.

Powell will make further statements on Thursday.

Stock movements

The Saudi market index concluded trading with a decline of 1.8 percent to 10,841 points, affected by the decline in the shares of Etihad Atheeb Communications Company by 1.8 percent and the decline in the shares of Elm Company by the same percentage.

In the rest of the sectors, the shares of Maharah Human Resources Company fell 9.9 percent, which is the largest decline in daily trading in more than a year and a half, following recording a sharp decline in quarterly profits.

George Khoury, Global Director of Education and Research at CFI, said that the Saudi stock market returned to losses following trading fluctuated for two days.

He added: “The market might continue to be affected by the decline in corporate earnings, the decline in oil prices, in addition to changing monetary policy expectations.”

In Dubai, the main index fell 0.9 percent to 3,929 points, driven by a 1.6 percent decline in the share of Salik Traffic Services.

The main index in Abu Dhabi closed down 0.2 percent to 9,529 points.

Standard Brent crude prices approached $80 per barrel on Thursday, with concerns regarding demand and a decline in the value of futures contracts due to war risks causing a wave of selling over the past week.

In Qatar, the main index fell 0.6 percent to 9,977 points, with most of the stocks listed in it in the negative zone, including Qatar Islamic Bank, which fell 0.9 percent.

Outside the Gulf region, the leading index of the Egyptian Stock Exchange rose 1.4 percent to 24,344 points, supported by a jump in Commercial International Bank shares that reached 4.1 percent.

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