Most stock markets in the Gulf ended Monday’s trading lower, and the Saudi index recorded its lowest level in more than 18 months, with the OPEC Plus group maintaining the target level of production, and traders awaiting the Federal Reserve (US Central Bank) meeting scheduled for next week.
And OPEC Plus decided, in a meeting yesterday, Sunday, to keep the target levels of oil production unchanged, at a time when oil markets are facing difficulty in assessing the impact of the slowdown in the Chinese economy on demand, and the impact of the ceiling imposed by the Group of Seven on Russian oil supplies.
The Saudi index fell 2.8 percent, to its lowest level since May 2021, affected by a 3.8 percent fall in the share of Al-Rajhi Bank, and the share of Retal Urban Development Company, which fell 1.8 percent.
Fadi Riyadh, chief market analyst at Capix.com, said that the decline in the Saudi stock market came amid the continued impact of concerns about oil markets and the global economy on traders’ expectations.
“However, the market may find some support with the continued strong performance of the local economy,” he added.
A survey showed on Monday that the non-oil private sector in Saudi Arabia grew at its fastest pace in seven years in November, supported by a strong increase in new orders and continued confidence in the growth outlook.
The Abu Dhabi index fell 0.8 percent.
Last Wednesday, Federal Reserve Chairman Jerome Powell said that the US central bank may slow the pace of raising interest rates “as soon as December”, but warned that the fight against inflation is not over yet.
Policy makers meet at the US Central Bank on December 13-14.
The currencies of most Gulf Cooperation Council countries are pegged to the dollar, and these countries generally follow the policy of the Federal Reserve, which makes the region directly affected by any monetary tightening by the US Central Bank.
The Qatari index fell 0.8 percent, with Petrochemical Industries Qatar dropping 3 percent.
The Dubai index rose 0.8 percent, extending its gains for the second session, supported by a 1.8 percent rise in the leading share of Emaar Properties.
Outside the Gulf region, the leading Egyptian index rose 1.8 percent, supported by a 3.9 percent rise in the share of the Commercial International Bank.
Riyad said that the Egyptian market continued to boom, with local investors maintaining high buying volumes.