Major stock exchanges in the Gulf region closed on Monday with performance mixed and the Abu Dhabi index was the biggest loser, while investors remain cautious about the recovery of the global economy and the oil market.
The Democrat-controlled US House of Representatives is expected to propose raising the corporate tax rate to 26.5 percent from 21 percent as part of a broad plan that includes tax hikes for the wealthy, the companies and investors, according to two sources familiar with the matter.
Global stocks are under pressure from inflation, which may not be as temporary as central bankers suggest, and indications that governments are eager to collect more taxes from companies and follow a stricter regulatory line.
In Abu Dhabi, the index fell 0.7%, retreating further from all-time highs, as it came under pressure from a 1.3% decline in the share of the country’s largest bank, First Abu Dhabi.
On the other hand, the Abu Dhabi National Oil Company (ADNOC) set the initial public offering price for its drilling unit, which gave ADNOC Drilling a value of $ 10 billion.
ADNOC Drilling is expected to be listed on the Abu Dhabi Securities Exchange around 3 October.
Dubai’s leading index fell 0.3%, impacted by a 0.7% drop in blue-chip Emaar Properties and a decline in Aramex Logistics Services.
The Saudi economy recorded annual growth of 1.8 percent in the second quarter of the year, according to official estimates of gross domestic product, but the non-oil sector in the world’s largest source of crude oil lost momentum.
In Qatar, the stock market index rose by 0.1%, supported by a 0.5% increase in the share of Petrochemical Industries Qatar.
Outside the Gulf region, Egypt’s leading equity index gained 0.9% after a week-long downward correction.
The market was supported by stronger fundamentals in Europe, which is a major trading partner, said Daniel Taqi El-Din, chief market analyst at FX Primus.
He believes that “the positive sentiment in European markets would stimulate investments in the Egyptian market”.
Read More About: Business News