In Gulf stock markets, a prevailing undertone of unease is evident as Monday draws to a close. The shadow of China’s economic slowdown looms over the trading floors, coupled with a dip in Oil Prices that only adds to the collective apprehension.
China’s economic landscape appears marked by a decline, with new Bank loans for July registering a substantial drop. Even with policymakers reducing interest rates and pledging further support to revive the economy, other key credit indicators also show signs of weakening.
TASI, which stands in for Saudi Arabia’s benchmark index, lost 0.5% of its value, breaking the momentum of three straight sessions of gains. Dr. Sulaiman Al-Habib Medical Services (4013. SE) bore a 1.9% loss, contributing to the market’s downward trend.
Meanwhile, Saudi Awwal Bank (1060. SE) underwent a retreat of 2.4% as it traded ex-dividend, experiencing a pullback after distributing dividends.
Commenting on the situation, Ahmed Negm, Head of Market Research MENA at XS.com, noted that the Saudi stock market grappled with downside risks as traders opted to sell again. Despite these recent price adjustments that have somewhat undermined the market’s strength, the main index still reflects a positive performance for the year.
Dubai’s primary share index, DFMGI, experienced a minor dip of 0.1%, weighed down by a 1.2% decrease in blue-chip developer Emaar Properties’ (EMAR.DU) value.
The Abu Dhabi index, FTFADGI, displayed a similar downward movement, retreating by 0.3%. First, Abu Dhabi Bank (FAB.AD), the largest lender in the country, bore the brunt of this decline with a loss of 0.7% in its value.
Oil prices, a cornerstone of the Gulf’s economic vitality, witnessed a subtle slip of about 1%. This drop was attributed to concerns surrounding China’s faltering economic recovery and a stronger dollar. These factors followed seven weeks of price increases fueled by the impact of tightening supply due to OPEC+ production cuts.
In Qatar, the benchmark. The QSI index underwent a retreat of 0.7%, predominantly due to a 1.9% fall in the value of petrochemical manufacturer Industries Qatar (IQCD.QA).
Beyond the Gulf region, Egypt’s prominent blue-chip index, EGX30, advanced by 0.2%. A 1.3% increase in the value of the top lender, Commercial International Bank (COMI.CA), facilitated this growth.
In a separate context, Egypt auctioned one-year euro T-bills, selling 626.4 million euros ($682.34 million). The central bank reported an average yield of 4% from this auction on Monday, providing a glimpse into financial activities beyond the Gulf’s immediate scope.
