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After strong weekly increases, where are the global and Gulf stock exchanges heading in the coming period?

Mahmoud Jamal – Mubasher: Most of the global and Gulf financial markets recorded strong gains at the end of trading in the third week of this month, topping the US indices, with the continued release of corporate business results and assessment of the effects of the monetary policy path on the performance of stocks, ignoring temporarily the escalation of developments regarding the geopolitical crisis between Russia and Ukraine.

According to statistics prepared by “Mubasher Information”, the American financial markets topped the rises globally in last week’s trading, after the Nasdaq index jumped 5.2%, the Dow Jones Industrial Average jumped 4.9%, and the Standard & Poor’s 500 increased by 4.7%, with the continued rise in the shares of banks that announce positive business results so far. Such as “Goldman Sachs” and “JP Morgan Chase”. In Europe, the European Stoxx 600 index recorded a weekly increase of 1.2%.

satisfying results

In turn, financial expert Tarek Morsi stressed that global markets are currently supported by the satisfactory increase announced by most major companies with their financial results, noting that interest concerns and concern about tightening monetary policy at a stronger pace to get rid of inflation are among the negative factors that may affect stock markets in the future. As it reduces the risk for investors.

In the Arab world, the Abu Dhabi market rose during the same week by 4.29%, the Dubai Stock Exchange by 1.17%, the Saudi market index increased by 2.11% and the first index of the Kuwaiti Stock Exchange rose by 2.13%. Meanwhile, the Qatar, Muscat and Bahrain Stock Exchanges declined by 1.4% to 0.02%.

better situation

And Mohammed Atta, an expert in financial markets, pointed out that the Gulf markets, including the UAE, enjoy a better economic situation, with the consistency of oil prices at good levels. The futures contracts for the benchmark Brent crude for December delivery rose weekly by about 2%, and the price of US West Texas crude for December delivery rose by about 0.5%.

He stressed that there are major factors that confirm the positive outlook at the medium level, amid the strengthening of the country’s strong financial position and the emergence of expectations by many international institutions that the economies of the region will witness growth unlike their global counterparts, in addition to the good profits recorded by listed companies and banks.

Best suited for investment

In turn, Hanan Ramses, a money market expert at Al-Hurriya Securities Brokerage Company, told Mubasher Information that Gulf stocks are considered the best and most suitable for investment at the present time in light of the issuance of reports from major financial institutions that support this, such as the report of the International Monetary Fund, which was recently issued and excluded the Gulf region and Egypt from a slowdown Economic growth rates, which sneezes on the financial markets of those countries.

She expected that the financial markets in the region would reap more gains in light of the continuation of acquisitions with the aim of forming giant entities like what the UAE is doing, noting that the continuation of the successive propositions and the return of the petrochemical sector to lead the scene again, as in the Saudi market.

She stressed that with the approaching of the World Cup, the Gulf indices will rise again near the areas of resistance from which they fell, and may bypass them, especially in the markets of Qatar and Abu Dhabi.

After sharp fluctuations, where is the Egyptian stock market heading in the coming period?

IMF talks

As for the Egyptian Stock Exchange, it achieved weekly gains estimated at 4.3%, amid news of the conclusion of talks with the International Monetary Fund. Hossam Eid, investment manager at International Securities Brokerage, confirmed that the good performance of most stocks and the varying rises of the sectors, with the switching of positions between the leading and small stocks, in addition to the activity of speculative stocks, some of which achieved large profit rates during the week’s trading. He expected the stock market to witness a new positive week with the continued flow of liquidity and the announcement of significant dividends that send new valuations for shares.

Earlier this week, Egyptian Finance Minister Mohamed Maait announced the completion of the agreement with the IMF at the expert level on the components of the country’s special program, adding that an announcement in this regard would be issued “very soon.”

It is noteworthy that Egypt began talks with the fund on a financial support package in March, shortly after the outbreak of the Ukrainian crisis, which exacerbated the already volatile financial conditions and prompted foreign investors to withdraw nearly $20 billion from the Egyptian treasury bond market within weeks.

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