Most of the major markets in the Gulf region fell today, Tuesday, as investors moved to secure their recent gains, amid anticipation of the Council’s plans Federal Reserve To raise interest rates to visualize their impact on the economy and energy demand.
Fed policymakers say inflation data due later this week will help them decide whether they can slow the pace of interest rate hikes at their next meeting to just 25 basis points after the larger jumps they adopted for most of 2022.
Oil prices, a major catalyst for financial markets in the Gulf, stabilized today, Tuesday, as Brent crude futures for March rose 15 cents, or 0.19%, to $79.80 a barrel by 10:36 GMT, according to Archyde.com.
Daniel Taqi El-Din, CEO of the Middle East and North Africa at DB Suisse, said that the Gulf stock markets are under increasing pressure ahead of the Federal Reserve Chairman’s speech and with more fluctuations in energy prices.
The main index in Saudi Arabia fell 0.1%, affected by declines of 0.8% in the share of Al-Rajhi Bank and 1.2% in its largest bank, the National Bank of Saudi Arabia.
Commenting on the performance of the Saudi market, financial market analyst Hamad Al-Olayan said that the arrival of international companies to the Saudi market gives an opportunity for other companies to come and be listed on Tadawul.
Olayan added in an interview with “Al-Arabiya” that the acquisition of shares by Saudi Salik in food companies, including “Olam”, with the aim of securing food for the Kingdom, whether in Singapore or other places, enhances the position of “Salik” in the coming periods.
He pointed out that the markets are awaiting inflation data at the end of this week, and wishing for inflation levels below 7%.
Olayan expected that the slowdown in inflation levels would help the Fed deal with the announced approach, with an increase of 25 basis points in the next two meetings.
In the Dubai market, the main index fell 0.3%, affected by declines of more than 1% in the share of Emaar Properties and 0.7% in the share of Dubai Islamic Bank.
In Qatar, the main index fell 0.1% after its largest bank, Qatar National Bank, fell 1.2%.
As for the main index in the Abu Dhabi market, it rose 0.3%, ending 4 consecutive sessions of losses. The index increased, supported by the rise of Etisalat shares by 3.4%, and Buruj shares by about 2%, after concluding two new contracts worth 55 million dirhams ($14.98 million).
Outside the Gulf region, the leading index in Egypt fell 3.6%, recording the largest decline in more than 6 months, ending a series of gains that lasted for seven days. Almost all stocks on the index recorded declines, including the Commercial International Bank, which fell 6.2%.
According to Taqi El-Din, the market is witnessing weak trading volumes in light of the continued pressure on the Egyptian pound and higher-than-expected inflation.
in Bahrain; The main index settled at 1889 points, while the main Muscat Stock Exchange index increased 0.5% to 4872 points.
In Kuwait, the main index jumped 1% to 8040 points.