“Gulf Stock Markets Fret Over US Debt Ceiling Talks, But Saudi Index Rises On National Bank Gains”

In the Dubai Financial Market, pressure was renewed on stocks after a strong recovery on Wednesday.

Farah Murad, senior market analyst at XTB for the Middle East and North Africa, said that market participants may exercise more caution in light of the continuing impact of US problems on the outlook.

“As a result, the main index in Dubai may witness some price corrections if the decline in sentiment continues,” she added.

Oil prices generally stabilized amid cautious anticipation by dealers for any indications of progress in talks to raise the US debt ceiling, after crude prices jumped in the last session amid optimism about fuel demand in the United States.

On Wednesday, President Joe Biden and House Speaker Kevin McCarthy stressed their intention to reach an agreement to raise the federal government’s debt ceiling of $31.4 trillion and avoid defaulting on its obligations, which would have dire economic consequences.

An agreement must be reached and approved by both chambers of Congress before the government runs out of money, which is expected by June 1

indicators performance

The main index of the Saudi Stock Exchange rose 0.6 percent, extending its gains from yesterday’s session, with the share of the National Bank of Saudi Arabia, the largest bank in the Kingdom, rising 2.7 percent.

Dubai’s main index fell 0.3 percent, with Salik, a traffic toll collector, down 1.3 percent.

The Abu Dhabi market index also fell 0.2 percent.

The Qatari index closed 0.4 percent lower, after rising 2 percent yesterday, amid media reports that Doha plans to boost the stock market to attract foreign investors.

Outside the Gulf region, the Egyptian blue-chip index EGX30 fell by 0.58 percent, affected by the 2.7 percent drop in the Commercial International Bank’s share.

A Reuters survey showed on Monday that the Central Bank of Egypt is expected to keep interest rates unchanged at its meeting, Thursday, after inflation fell slightly in April and after the bank raised interest rates by 200 basis points in March.