Most of the stock markets in the Gulf are witnessing a decline, and Dubai leads the losses, affected by the decline in the shares of Emaar Properties.
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Most of the Gulf stock exchanges declined, and Dubai topped the losses
The majority of stock markets in the Gulf fell today, Monday, and Dubai led the losses, affected by the decline in Emaar Properties’ shares, while the Egyptian market expanded its gains, led by telecom stocks.
A survey showed that “the non-oil private sector in Saudi Arabia expanded in August, at the fastest pace since October, as improving demand conditions contributed to boosting commercial activity.”
A similar survey in the UAE indicated that “the non-oil private sector grew, in August, at the fastest pace since June, 2019, supported by improved demand and lower selling prices, despite the decline in sentiment regarding the economic outlook to its lowest level in 17 months. “.
The Dubai index fell 1.3%, extending losses for the fourth consecutive session. Shares of Emaar Properties fell 2% following lower expectations for the emirate’s housing market on the back of higher borrowing costs.
A Archyde.com poll of real estate market analysts indicated that “real estate prices in Dubai will rise this year and next at a slower pace than previously thought, as the rise in the cost of mortgages and the cost of living crisis will lead to a decline in foreign demand.”
Most analysts said that “the recovery is fragile and unstable, and the oversupply of residential real estate, and rising interest rates, will put pressure on prices in the coming months.”
Meanwhile, Dubai’s Salik Traffic Toll Company reported, earlier today, that it “will sell 20% of its shares through an initial public offering, and it is the third state-linked entity seeking to list this year.”
And Wael Makarem, chief market analyst at Exness, said that “the market may witness a rebound in sentiment with the announcement of Salik’s public offering, because the announcement may attract investors looking for new opportunities.”
Makarem added that “the Egyptian Stock Exchange may record additional gains thanks to the improvement in conditions in the non-energy sectors.”
The Saudi index fell 0.7%, with the Saudi Al-Ahly Bank falling 1.9%, and Al-Rajhi Bank falling 0.8%. The Abu Dhabi index fell 0.7%, affected by a 1.2% decline in the shares of First Abu Dhabi Bank, the largest bank in the Emirates.
However, the shares of “Alpha Abu Dhabi” Holding Company rose slightly, following its unit, “Pure Health”, signed an agreement to acquire a minority stake in the American company “Ardent”, the leading healthcare company, with a total investment of 1.8 billion AED.
The Qatari index fell 0.8%, extending its losses for the sixth consecutive session. Qatar National Bank led the losses on the index, following its share lost 2%, while Qatar Islamic Bank rose 1.5%.
Outside the Gulf region, the leading stock index in the Egyptian Stock Exchange rose 1.7%, supported by a 15.8% jump for Telecom Egypt.
Telecom Egypt responded to media reports indicating the intention of the Qatari sovereign wealth fund to buy the company’s stake in Vodafone Egypt, saying that it had not received an official offer from any party.