Recession fears and falling oil prices hit Gulf stock exchanges

A significant decline in the shares of major companies and banks in the Gulf (getty)

Concerns contributed slack Economic, decline oil pricesAnd the trend towards increasing US interest rates, in declining indicators Gulf stockstoday is Sunday.

The Saudi Stock Exchange index fell 2.8%, or 318 points, at the level of 11,143 points, half an hour after the opening, today, Sunday, the first session of the week.

The decline in the Saudi index came today, amid a collective decline of the sectors that make up the stock market. The company’s stock fell Aramco Saudi Arabia has the largest weight at 2.4% in the market, and Al-Rajhi Bank is the second largest in the index, 3.2%.

The Third National Bank decreased by 2% in weight, amid a decline of most of the listed banks by more than 1%.

The index had risen significantly during the first five months of this year 2022, supported by the rises of the banking sector, which benefited from raising interest rates, and energy and petrochemical companies rose as a result of the rise in oil prices. It later declined by about 20% due to fears of a US economic recession as a result of the tightening of monetary policy after US inflation rose at a higher pace than expectations in August at 8.3% versus 8.1% expected.

As a result, the interest rate was raised, last Wednesday, to the highest level since the global financial crisis, to reach 3.25%.

In Doha, the Qatar Stock Exchange index fell at the beginning of trading today, Sunday, by 243.04 points, or 1.92%, to drop to the level of 12,400 points, compared to its closing last Thursday.

The various sectors that make up the general index of the Stock Exchange recorded declines, led by the industrial sector with 2.39%, followed by the banking and financial services sector with 2.02%, the transportation sector with 1.81%, the real estate sector with 1.58%, then the consumer goods and services sector with 1.37% And the insurance sector by 0.90%, and finally the communications sector by 0.80%.

In Kuwait, the stock market indices fell today, Sunday, as the general index fell by 200.04 points, or 2.6%, to reach the level of 7,244.09 points.

During the session, 209.17 million shares were traded through 14,111 cash deals, with a value of 53.7 million dinars, or about 173.6 million dollars. The main market index in the Kuwait Stock Exchange decreased by 194.4 points, or 3.4%, to reach the level of 5,400.54 points.

(Anatolian, New Arab)

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