An expert in financial markets reveals the performance of Arab stock exchanges after interest rates rise

Hanan Ramses, a financial markets expert, said after a series of declines, the worst in several months, due to the link between global markets and the US Federal Reserve’s rise in interest rates and the adoption of strict policies, the ownership of markets to confront inflation, which affected all countries of the world due to the continuous escalation of the Ukrainian crisis.

Hanan Ramses continued that Arab markets returned to variation, and some of them tried to dispel a large part of their losses and interacted with economic news supporting growth rates and the presence of its indicators as the main choice for the foreign trader increases.

Hanan Ramses, an expert on financial markets, reviewed the performance of the Arab stock exchanges last week:

Kuwait Stock Exchange

The Kuwaiti Stock Exchange recorded its second weekly decline in a row, with growing concerns about the global economic situation and the continuation of the political tensions caused by the war in Ukraine, in addition to the markets generally affected by the deteriorating health conditions in China with the outbreak of the Corona pandemic again.

This week, the main index recorded a 0.62% drop to the level of 6041.28 points, compared to 6079.03 points that closed last week, with a loss of 37.75 points.

The “Main 50” also fell by 0.04%, to close at 6326 points, with losses of 2.75 points, compared to last week’s close at 6328.75 points.

The first market fell 0.47% to 8696.47 points and lost 40.69 points compared to the previous week’s close at 8737.16 points.

The weekly total index for the general index was negative, with a decrease of 0.50%, or 39.33 points, to close at 7829.50 points, compared to the previous week’s close at 7868.83 points.

The total volume of Boursa Kuwait trading during the week amounted to 1.122 billion shares in just 4 sessions due to the weekend mourning the death of the President of the UAE, which saw the rate of decline in volumes during the period at 26, 1% compared to trading last year. week of 1.517 billion shares.

The Boursa’s liquidity also decreased by about 8.5% during the comparison periods; It reached 389.38 million dinars, compared to 425.63 million dinars in the previous week.

The number of total transactions during the week reached 77 329 thousand transactions, compared to 85 797 thousand transactions in the previous week, a decrease of 9.9%

Saudi Stock Exchange

The Saudi stock market ended its weekly trading with a noticeable decline, to continue its losses for the second week in a row, in light of a combined decline in its main sectors.

The general index of the market “TASI” recorded a decrease of 3.13%, during the week ended 19 May 2022, with losses amounting to 407.34 points, which dropped to the level of 12,427,96 points, compared to 12,835.30 at the end of last week.

Market losses amounted to 301.28 billion riyal, bringing the market capitalization of shares listed on “Tadawul” to 11.88 trillion riyal, compared to 12.18 trillion riyal, in the previous week.

The red color dominated the performance of the sectors, led by the banking sector, which fell by 4.05%, the telecommunications sector fell by 4.61%, and the losses of the basic materials and energy sectors fell by 3.08 respectively % and 2.41%.

Profits were limited to 6 sectors, led by the healthcare sector, after rising by 4.43%, and the capital goods sector came in second place, by 2.68%.

Trade values ​​fell to 43.43 billion riyals during the week, compared to 46.54 billion riyals last week, with a decrease of 6.68%, bringing the average values ​​down to about 8.7 billion riyals per session.

Weekly trading volumes decreased marginally to 906.77 million shares, compared to 933.72 million shares for the previous week, a decrease of 2.89%, bringing the average volumes to 181.35 million shares per session .

At the level of share performance, the “Arabia Insurance” share recorded the highest losses, after falling by 19.34% at the level of 25.65 riyal, and the highest gains were for the “Sadarat” share, which jumped by 60.56%, to the level of 97.30 riyals.

“Al-Rajhi” recorded the highest trading value during the week, with about 5.86 billion riyals, and it fell by 6.69%, and “Saudi Aramco” issued volumes with 75.87 million shares, which recorded a decrease of 2.21%.

Parallel declines 0.61%

At the parallel market level, the “minimum growth” index fell by 0.61% during the week, with losses amounting to 138.34 points, bringing it to the level of 22 508.4 points.

Parallel trading values ​​fell to about 149.8 million riyals, compared to 154.34 million riyals, while trading volumes rose to 2.25 million shares last week, compared to 1.97 million shares.

UAE financial markets

The UAE financial market indices fluctuated during this week’s trading, with the Dubai Financial Market slightly lower than last Friday

While the Abu Dhabi Stock Exchange Index rose with the support of the banking and real estate sectors.

At the end of this week’s trading, the Dubai Financial Market Index fell 0.73 percent, to the level of 3,393 points, compared to about 3,418 points the previous week.

The banking sector rose 1.25 percent, coinciding with the rise of Emirates National Dubai by 0.38 percent, Dubai Islamic Bank by 2.39 percent, and GFH Group by 1.82 percent.

The real estate sector increased by 6.37 percent, which coincides with the increase of Emaar Properties 7.27 percent, Emaar Development 4.15 percent and Union Properties 5.14 percent.

The market value of Dubai shares recorded 552.658 billion dirhams at the end of the week, compared to about 560.169 billion dirhams the previous week, with losses amounting to 7.511 billion dirhams.

As for the Abu Dhabi Securities Exchange, it rose 5.08 percent from last week to 9,908 points, compared to about 9,429 points the previous week.

This came amid a 3.75 percent increase for Aldar Properties, 16.58 percent for International Holding, 6.49 percent for First Abu Dhabi Bank, 3.04 percent for Al Fazbi, 3.72 percent for Farglobe. Group, 8.42 percent for Abu Dhabi Commercial Bank, 9.21 percent for Abu Dhabi Islamic Bank, and 13.9 percent for Agthia Group. Dana Gas 7.41 percent.

The market value of Abu Dhabi shares reached 1.884 trillion dirhams at the end of the week, compared to a value of 1.793 trillion dirhams the previous week, with weekly gains of about 91 billion dirhams.

Also read | Financial markets expert: The performance of the Arab stock exchanges has changed with the continuation of the Russia-Ukraine war

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