2023-10-04 15:12:28
Most Gulf stock exchanges closed lower due to the decline in oil and global stocks
Most stock markets in the Gulf closed lower today, Wednesday, tracking the impact of oil prices and global stocks, which fell due to investors betting on interest rates remaining high, which portends deteriorating global economic conditions.
Stock markets declined for reasons, the most important of which was the growing feeling that interest rates in major economies would remain high for a longer period in order to combat inflation and the continued strength of US economic data. Monetary policy in the six Gulf Cooperation Council countries is usually guided by the policies of the US Central Bank, because the currencies of most of them are linked to the dollar.
The Dubai index fell 0.2% to 4,192 points, affected by the decline in the shares of Emaar Properties by 3.3% and the decline in the shares of the Emirates Central Cooling Systems Corporation (Empower) by 2.1%.
Daniel Takieddine, CEO of the Middle East and North Africa region at BD Suisse, said that the Dubai Stock Exchange declined, recording some price corrections after reaching new peaks this year. He added: “The market may remain somewhat vulnerable to losses, as traders consider concerns about the direction of monetary policy in the United States.”
The Abu Dhabi index fell 0.2% to 9,824 points. While the Saudi index fell 1% to 10,840 points, with most of the stocks included in the index declining, including the oil giant Saudi Aramco, which fell 0.7%.
Oil prices, a major stimulant for the economy in the Gulf, fell after dispelling demand concerns due to macroeconomic challenges, following Saudi Arabia and Russia’s pledge to continue reducing crude oil production until the end of 2023.
Two sources said during the online meeting of the OPEC+ Joint Ministerial Committee on Wednesday that the committee kept the group’s production policy unchanged.
Taqi Al-Din stated that the Saudi stock market may deepen its losses if oil prices continue to decline.
The Qatari index fell 0.8% to 10,187 points, with almost all stocks included in the index closing lower. Outside the Gulf region, Egypt’s leading stock index rose 0.8% to 19,873 points, ending losses for four sessions.
(Archyde.com)
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