2023-06-20 17:18:58
Gulf markets
Gulf stock markets closed on a different note, on Tuesday, amid investors’ caution due to the volatility of oil prices, and pending more details about China’s plans to support its slow economic recovery, and while the Dubai and Qatar indices fell, the Saudi and Abu Dhabi indices closed higher.
Beijing cut the key interest rate for one-year loans by 10 basis points to 3.55 percent, and lowered it by the same margin for five-year loans to 4.20 from 4.30 percent. The latest monetary easing comes as China’s post-coronavirus recovery shows signs of losing the momentum achieved in the first quarter of the year.
Crude oil futures also fell about 2 percent in volatile trading, amid expectations of slowing oil demand growth from China, the world’s second-largest oil consumer, and market disappointment over the amount of China’s main lending rate cut.
Brent crude futures for August delivery lost $1.14, or 1.22 percent, to $75.17 a barrel by 16:15 GMT.
Nymex crude fell $1.49, or 1.49 percent, to $70.44 in the August delivery contract.
Market movements
The Dubai index extended its losses for the second session, to close 0.3 percent lower.
The index declined due to losses in the financial, construction and industrial sectors. Emaar Properties fell 1.2 percent and Emirates Central Cooling Systems fell 0.6 percent.
Emirates NBD Bank also fell, 1 percent.
The Qatari index fell 0.2 percent, giving up its gains in the previous session, due to a 1.2 percent drop in Qatar National Bank and 1.6 percent in Ezdan Holding.
The Saudi index closed up 0.1 percent, with Dr. Sulaiman Al-Habib Medical Services Group rising 0.7 percent, and Cooperative Insurance jumping 2.3 percent.
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The share of Jamjoom Pharmaceutical Factory (Jamjoom Pharma) jumped by 30 percent to 78 riyals, with the beginning of its offering in the market for trading at a price range of 60 riyals.
And the Abu Dhabi index continued its rise for the third consecutive session, up 0.1 percent, supported by gains for Alpha Abu Dhabi, which amounted to 1.1 percent, and Burjeel, which rose 1.8 percent.
“Oil prices remained volatile, as the (slow) pace of Chinese economic recovery raised concerns among traders, which is affecting the outlook for oil demand,” said Daniel Taqi El Din, CEO of the Middle East and North Africa region at BD Suisse.
Outside the Gulf region, the Egyptian leading stock index EGX30 fell by 0.4 percent, extending the losses of the previous session, with shares falling in the financial and raw materials sectors.
The shares of the Commercial International Bank and Misr for Fertilizer Production fell 0.7 percent and 4 percent, respectively, while Ezz Steel fell 4.7 percent.
Gulf markets are subject to fluctuations in global markets
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