© Reuters. An investor in the Dubai Financial Market in a photo from the Reuters archive
(Reuters) – Most major stock markets in the Gulf closed lower on Monday, coinciding with a decline in stocks globally after investor confidence declined due to indications that interest rates will remain high for a longer period than expected.
Monetary policy in the six Gulf Cooperation Council countries is usually guided by decisions taken by the Federal Reserve (the US central bank) because most of the currencies of those countries are linked to the dollar.
It fell 0.7 percent, a decline for the third day in a row, after declines in almost all sectors. Banking and health care stocks led the losses.
The shares of Al Rajhi Bank, the second largest bank in terms of assets, fell 1.9 percent, and the shares of Dr. Sulaiman Al Habib Medical Services Group fell 1.7 percent.
However, the Lome car rental company’s stock jumped nearly 30 percent above its listing price in its first trading on Monday.
It fell 0.1 percent, affected by a 1 percent decline in the shares of Abu Dhabi National Energy Company (Taqa), becoming the biggest loser on the index, while the shares of the International Holding Company lost 0.5 percent.
George Khoury, global head of research at CFI, said that the stock market in Dubai began the week with volatile trading after the rise it witnessed last week because investors moved to secure their gains.
However, it rose 0.3 percent, supported mainly by gains in real estate and financial stocks.
The shares of Emaar Properties (DFM:) rose by more than one percent, and the shares of Emirates NBD Bank, the largest in the Emirate of Dubai, rose 1.4 percent.
The Qatar index fell by 0.2, continuing its decline for the second session, with industrial and financial stocks being the biggest losers. Industries Qatar and Qatar Islamic Bank shares fell 1.5 percent and 0.6 percent, respectively.
Outside the Gulf region, the leading stock index rose 0.5 percent, continuing its gains for the second session in a row, thanks to a jump in the shares of Elsewedy Electric, which amounted to 5.4 percent, and Ezz Steel, the largest steel company in Egypt, by 5.8 percent.
(Prepared by Muhammad Ali Faraj for the Arabic Bulletin – Edited by Rehab Alaa)
2023-09-25 14:47:00
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