2023-05-24 16:34:12
The decline of the Gulf stock exchanges due to the US debt ceiling crisis… and the Egyptian stocks are out of tune
Most stock markets in the Gulf closed lower today, Wednesday, following the pace of global stocks, as the stalled negotiations over raising the US debt ceiling affected investor sentiment.
The main index in Saudi Arabia fell 0.4%, at 11,236 points, for the fourth consecutive session, as a result of losses in almost all sectors on the index, led by financial institutions and health care companies.
The share of Al-Rajhi Bank, the second largest bank in the Kingdom by assets, fell by more than 1%, while the share of Al-Mouwasat Medical Services Company plunged 4.3%, in its worst performance in nearly three months.
Representatives of US President Joe Biden and Republican lawmakers in Congress ended another round of talks on the debt ceiling on Tuesday, with no sign of progress, as the deadline for raising the $31.4 trillion borrowing limit or risking a debt default approaches.
Farah Murad, senior market analyst at XTB for the Middle East and North Africa, said that what happened was the reaction of dealers in Gulf stock markets to developments in global markets, as the problem of the US debt ceiling remains the focus of many.
The main index in Dubai fell 0.1% at 3,530 points, affected by a decline in almost all sectors, and shares of utility companies and the financial sector led the losses.
Emirates Central Cooling Systems Corporation (Empower) fell 1.7%, while Dubai Islamic Bank fell nearly 1%.
The index in Abu Dhabi fell 0.3%, at 9464 points, affected by a decline of regarding 1% in the shares of First Abu Dhabi Bank, the largest bank in the UAE. Abu Dhabi Islamic Bank shares fell 2.6%.
The Qatari index lost 0.8% at 10,524 points, extending losses for the third consecutive session, and financial sector stocks were among the biggest losers.
The shares of most Qatari banks fell into the red zone, including Qatar Islamic Bank and Commercial Bank, which fell 1.3% and 1.6%, respectively, while shares of Qatar National Bank, the largest Gulf bank, fell by approximately 0.8%.
Outside the Gulf region, the leading index in Egypt rose 1.8% at 17,091 points, with 26 out of 31 stocks on the index in the green zone.
The share of the Eastern Tobacco Company (Eastern Company) jumped 6.5%, and the share of the Commercial International Bank, the largest private bank in Egypt, rose 0.9%.
Farah Murad said that Egyptian stocks recovered to some extent following a series of losses, as local investors flocked to the market, while international investors continued a wave of selling due to the risks arising from the currency crisis and the increasing desire to avoid risk.
(Archyde.com)
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