January 18, 2023

Gulf bourses sway; Egypt gains ground

On Sunday, stock markets in the Gulf region shook, with the Qatari index continuing its third session of losses.

Policymakers at the U.S. Federal Reserve expressed satisfaction on Thursday that inflation continued to decline in December, clearing the way for a potential cut to a quarter point interest rate hike at the next meeting of the U.S. central bank in just under three weeks.

However, Fed policymakers continue to support more rises of any size and a finish line above 5%.

The majority of Gulf currencies are tied to the dollar, and Qatar, Saudi Arabia, and the United Arab Emirates often follow changes in American monetary policy.

Saudi Arabia’s benchmark index (.TASI) declined 0.2% as a result of Riyad Bank (1010.SE) losing 1% of its value and Saudi Basic Industries Corp. losing 0.7% of its value (2010.SE).

The largest miner in the Gulf, Saudi Arabian Mining Co (Ma’aden) (1211.SE), lost 1.2% in other trading, after two sessions of advances.

The miner announced on Wednesday that it has decided to create a joint venture with the sovereign wealth fund of the monarchy to invest in mining assets throughout the world.

According to government figures released on Sunday, Saudi Arabia’s annual inflation rate increased slightly in December from 2.9% to 3.3%, with housing prices once again serving as the primary driver of price increases.

The Commercial Bank share price decreased 1.9%, which contributed to Qatar’s share index (.QSI) dropping by 0.3%. (COMB.QA).

The largest bank in the Gulf by assets, Qatar National Bank (QNB) (QNBK.QA), rose 0.7%, snapping a three-session losing streak.

After accounting for the hyperinflation associated with its operations in Turkey, the lender last week claimed an increase in yearly net profit of 9%.

El Sewedy Electric’s 5.3% increase helped Egypt’s blue-chip index (.EGX30) gain 0.1% outside of the Gulf (SWDY.CA).

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