Wednesday 13/December/2023 – 07:42 PM
Stock markets in the Gulf region closed mixed on Wednesday, amid weak oil prices and the latest interest decisions that the Federal Reserve (the US central bank) will take this year.
Oil prices witnessed little change after falling more than 3% to their lowest levels in 6 months in the previous session due to fears of excess supply and demand.
In Abu Dhabi, the main index fell 0.1%, following the decline in the shares of First Abu Dhabi Bank, the largest bank in the Emirates, which fell 0.3%, according to Reuters.
Stock markets in the Gulf region
Eman Al-Ayyaf, CEO of Eman Al-Ayyaf Trading Company, said that the Abu Dhabi stock market may remain under pressure as oil prices continue to decline.
The market rebounded this week, but it may continue to face downside risks. The main Dubai market index rose 0.1% thanks to a 1.5% rise in Dubai Islamic Bank’s stock, and the Saudi market’s main index rose 0.1%, with Alinma Bank’s stock rising 1.8%.
Today, the Fed is widely expected to keep interest rates unchanged for the third time in a row, but it may also signal that the shift to easing monetary policy will not happen soon and will not be sharp given the lack of sustained pace of decline in inflation.
The currencies of most Gulf Cooperation Council countries, including the UAE, are linked to the dollar and the Federal Reserve’s policy moves are closely followed, exposing the region to the direct impact of monetary tightening policies in the world’s largest economy. However, the shares of oil giant Saudi Aramco fell 0.5%.
The Qatari index rose 0.1%, ending a series of losses that lasted for 8 days, with the share of Qatar Islamic Bank rising 1.7%, and outside the Gulf region, the leading Egyptian index rose 2.9% with most of its stocks rising, including the Misr Petroleum and Fertilizer Manufacturing Company (MOPCO), which jumped. 20%.
2023-12-13 17:44:54
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