An expert in financial markets reveals the extent to which Arab stock exchanges are affected by the decision of the US Federal Reserve

Hanan Ramses, an expert on financial markets, said that the Arab stock markets were affected by the fall after the US Federal Reserve’s decision, so that the interest rate became 1.75%, which is the highest rate of increase that the US economy has had since 1994. have seen. , and accordingly the world’s central banks began to raise interest rates, so that the Swiss Central interest rates began to rise This is the first time in 50 years.

The financial market expert continued, and the Arab central banks responded quickly by raising interest rates to protect their share of foreign investment to avoid their migration to markets that issue high-yield bonds.

She explained that the effect of the increase in interest rates was negative on the financial markets as Arab market indices fell in the second week of June.

Hanan Ramses, an expert on financial markets, reviewed the performance of the Arab stock exchanges during the week that ended as follows.

Saudi Stock Exchange

The Saudi stock market ended its weekly trading with a noticeable decline, recording the second highest weekly losses in about 20 months, amid a combined decline of sectors.

The general index of the market “TASI” fell by 6.2% during the week ending 16 June 2022, which is the highest weekly decline since October 2020, losing 779.47 points of its value, bringing it to the level of Dropped 11 824.42 points.

All sectors turned red, led by the banking sector, which fell by 6.44%, the basic materials sector fell by 8.05%, and the losses of the energy and communications sectors fell by 5.1% and 0.51, respectively. % amount to.

The trading movement saw a noticeable increase at all levels during the current week compared to the previous week.

Trade values ​​rose to 40.58 billion riyals, compared to about 29 billion riyals for the previous week, an increase of 39.8%, bringing the average value to 8.1 billion riyals per session.

Weekly trading volumes increased by 32.4% to reach 1.02 billion shares, compared to 770.08 million shares traded last week, bringing the average volumes to 203.96 million shares per session.

In terms of share performance, the “Arab Sea” share recorded the largest losses during the week, after falling by 40.73%, and the highest gains were for the “Seiko” share, with an increase of 7, 95%.

The Saudi Telecom “STC” share recorded the highest trading value, with about 4.69 billion riyals, while “Dar Al-Arkan” recorded the highest volumes with 137.7 million shares.

At the parallel market level, the “Higher Limit Growth” index dropped its weekly trades by 3.3% and lost 736.62 points of its value to fall to the level of 21 504.18 points.

Parallel trading values ​​rose to about 244 million rials, compared to 109.2 million rials for the previous week, after trading volumes increased to 4.29 million shares, compared to about 1.58 million shares recorded by the market last week.

UAE financial markets

The UAE stock market indices ended this week’s trading lower, with Dubai and Abu Dhabi stock markets falling under pressure from the banking and real estate sectors, which coincided with the US Federal Reserve’s decision to raise interest rates by 75 basis points. the largest rise in interest rates over 30 years.

The Dubai Financial Market recorded losses of about 9.83 billion dirhams during the week, while the Abu Dhabi Stock Exchange recorded losses of about 28 billion dirhams.

At the end of this week’s trading, the Dubai Financial Market Index fell by 3.37% to the level of 3262 points, compared to about 3376 points the previous week.

The banking sector came in with a decline of 1.98%, which coincides with a decline in Emirates National Dubai by 0.37%, Dubai Islamic Bank 4.07%, GFH Financial Group 8.93%, and Commercial Bank of Dubai 1.05%.

The real estate sector fell by 7.75%, with Emaar Properties down 8.29%, Emaar Development 3.11% and Union Properties 11.54%.

The market value of Dubai shares at the end of this week recorded 534.830 billion dirhams, compared to about 544.665 billion dirhams the previous week, with weekly losses of 9.835 billion dirhams.

The Abu Dhabi Securities Exchange fell 1.96% to 9,390 points, compared to about 9,578 points the previous week.

This came amid a decline in Aldar Properties 9.34%, First Abu Dhabi Bank 3.55%, Al Fathby Holding 1.96%, Abu Dhabi Commercial Bank 4.92%, Abu Dhabi Islamic Bank 3.72 %, Dana Gas 1.83% and Waha Capital 0.69%.

While the market value of Abu Dhabi shares reached 1.908 billion dirhams at the end of the week, compared to a value of 1.936 trillion dirhams the previous week, with weekly losses of about 28 billion dirhams.

Kuwait Stock Exchange

The Kuwait Stock Exchange fell in the second week of June, amid an increase in the trading movement in terms of volumes and values. The decline came as a result of the decision of the US Federal Reserve.

This week, the main index recorded a decline of 2.49% at the level of 5761.90 points, compared to 5908.79 points that closed last week, with a loss of 146.89 points.

The “Main 50” also fell 3.09% to close at 6,003.96 points, with losses amounting to 191.59 points, compared to last week’s close of 6,195.55 points.

The first market fell by 2.59% to the point 8218.04, losing 218.85 points, compared to the previous week’s close at 8436.89 points.

The overall weekly result of the general index was negative, with a decrease of 2.57%, or the equivalent of 195.59 points, to close at 7413.83 points, compared to the previous week’s close at 7609.42 marks.

However, the stock market saw variation in the last sessions of the week, Thursday, as the general and first indices rose by 0.18% and 0.26% respectively, while the main and “main 50” indices rose by 0.12% and 0.44 % decreased, respectively.

The total volume of Boursa Kuwait trading during the week reached 921.74 million shares, an increase of 6.9% compared to trading last week, which amounted to 862.34 million shares.

The Boursa’s liquidity also increased by 26.3% during the comparison periods, reaching 311.63 million dinars, compared to 246.79 million dinars in the previous week.

The number of total transactions during the week reached 58 694 thousand transactions, compared to 60 531 thousand transactions in the previous week, a decrease of 3%.

Also read | An expert in financial markets reveals the reason for the decline in the Arab stock exchanges

Leave a Comment