Most of the Gulf stock markets have closed in lower today, Monday, after a senior Federal Reserve official (the US central bank) warned investors not to be affected too much by single-digit inflation, as falling oil prices increased fears.
US Federal Reserve Board member Christopher Waller said Sunday the bank could take in considered slowing the pace of interest rate hikes at its next meeting, but added that this should not be taken as a sign of “easing” in its fight against inflation.
Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates, and Qatar, link their currencies to the US dollar and generally follow the Federal Reserve’s impact on monetary policy decisions, which exposes the region to all direct impact of any US monetary tightening, according to Reuters.
The Saudi stock index fell 0.4%, impacted by a 3% drop in shares in the National Bank of Saudi Arabia, the country’s largest bank.
Shares in Ahli Bank were up 2.9% in the previous session, after saying they did not see any information that could raise concerns about Credit Suisse’s governance and that supports the bank’s transformation plan announced on October 27.
The bank has agreed to invest 1.5 billion Swiss francs ($ 1.59 billion) in the Swiss bank and is expected to acquire a 9.9% stake.
Since the October announcement, Saudi Arabia Al-Ahly has lost 39.94 billion riyals ($ 10.63 billion) of its market value.
The shares of the Tadawul Group, owner and operator of the Saudi stock exchange, fell by more than 6%, continuing the losses of the last session.
Saudi Public Investment Fund sold 10% stake in Tadawul through a secondary stock offering, during which it raised 2.3 billion riyals ($ 612 million). The bank sold 12 million shares during the bidding process using the accelerated order book construction system at a price of 191 riyals per share, which is a 9% discount from Thursday’s closing price.
The Dubai Stock Exchange index fell 0.4% as Emaar’s leading shares decline before announcing results for the third quarter.
Wael Makram, Senior Market Strategies Analyst in Middle East and North Africa at Exness Company, he said that the Dubai market index has seen some fluctuation after rising for two weeks and that the market has also interacted with the mixed results of some companies.
In Abu Dhabi, the index fell 0.1%, while the Qatar index closed in down by 0.2%, with most of the shares in the index in decline, including Qatar Petrochemical Industries Company.
Outside the Gulf region, Egypt’s blue chip index rose 1.3%, with Commercial International Bank’s share in increase of 2.3%.
In Saudi Arabia, the index fell 0.4% to 11,197 points.
In Abu Dhabi, the index fell 0.1% to 10,620 points.
In Dubai, the index fell by 0.4% to 3,394 points.
In Qatar, the index fell 0.2% to 12,586 points.
In Egypt, the index rose 1.3% to 12,136 points.
In Bahrain, the index fell 0.1% to 1,865 points.
In the Sultanate of Oman, the index fell 0.3% to 4,461 points.
In Kuwait, the index rose 0.2% to 8,578 points.
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