© Archyde.com. A trader during trading on the Saudi Stock Exchange in a photo from Archyde.com archive.
(Archyde.com) – Most stock markets in the Gulf ended lower on Monday, hitting their lowest level in more than 18 months, with the OPEC + group maintaining its target level of production and traders awaiting the Federal Reserve meeting (the US central bank) scheduled for next week.
OPEC + decided at a meeting on Sunday to keep the target levels of oil production unchanged at a time when oil markets are having difficulty assessing the impact of the slowdown in the Chinese economy on demand and the impact of the ceiling imposed by the Group of Seven on Russian oil supplies.
The Saudi index fell 2.8 percent, to its lowest level since May 2021, affected by the decline in the share of Al Rajhi Bank (TADAWUL:) 3.8 percent, and the share of Retal Urban Development Company, which fell 1.8 percent.
Fadi Riyad, chief market analyst at Capix.com, said that the decline in the stock market came amid the continuing impact of concerns regarding oil markets and the global economy on traders’ expectations.
“However, the market may find some support with the continued strong performance of the local economy,” he added.
Monday’s survey showed that Saudi Arabia’s non-oil private sector grew at its fastest pace in seven years in November, supported by a strong increase in new orders and continued confidence in the growth outlook.
It fell 0.8 percent.
Federal Reserve Chairman Jerome Powell said last Wednesday that the US central bank may slow the pace of raising interest rates “as soon as December”, but warned that the fight once morest inflation is far from over. Policy makers meet at the US Central Bank on December 13-14.
The currencies of most of the Gulf Cooperation Council countries are pegged to the dollar, and these countries generally follow the policy of the Federal Reserve, which makes the region directly affected by any monetary tightening by the US Central Bank.
The Qatari index fell 0.8 percent, with Petrochemical Industries Qatar dropping 3 percent.
And it rose 0.8 percent, to continue its gains for the second session, supported by the rise in the leading stock, Emaar Properties (DFM:), by 1.8 percent.
Outside the Gulf region, the leading index rose 1.8 percent, supported by an increase in the share of Commercial International Bank (EGX:) 3.9 percent.
Riyad said that the Egyptian market continued to boom, with local investors maintaining high buying volumes.
(Prepared by Amira Zahran for the Arabic Bulletin – Edited by Ahmed Sobhi)
