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Most of the Gulf stock exchanges and Egypt rose strongly in the first week of October… What happened?

Mahmoud Jamal – Mubasher: Most of the Gulf stock exchanges rose by the end of the first week of this month, tracking the impact of the rise in global stock markets and the gains in oil prices, after the “OPEC Plus” alliance agreed to reduce global supplies by reducing production targets by two million barrels per day.

Oil prices, the main catalyst for the region’s stock markets, achieved the largest weekly increase in 6 months, as Brent crude for December delivery jumped 15% to $97.92 a barrel and West Texas crude for November delivery rose 16.5% to $92.64 a barrel.

According to statistics prepared by “Mubasher Information”, it jumped The Saudi market index “TASI” increased by 3.09% at the end of the week’s trading, the Qatar Stock Exchange index rose 2.6%, the first market index of the Kuwaiti Stock Exchange increased by 1.14%, the Abu Dhabi and Dubai stock indexes increased by 2% and 1%, respectively, and the Muscat Securities Market Index increased Finance 0.24%.

Mahmoud Atta, investment manager at Universal Securities Brokerage, told Mubasher Information that: Gulf stock exchanges are likely to continue to rise with the continuation of recording new increases in oil prices, which represent the largest return for the revenues of the countries of the region, noting that the recovery of oil and natural gas prices and their upward trend with the continuation of the global energy crisis qualifies the region’s stock exchanges for more gains.

He pointed out that the region’s stock exchanges may find support in the coming period from the main factors for the listed companies, most notably the business results that are approaching the announcement season for the nine-month period of this year, in addition to their news of expansions and acquisitions, noting that the markets may be subjected to rapid pressure if there is any development regarding Tightening of US monetary policies in addition to geopolitical tensions.

For her part, Asmaa Ahmed, a stock market analyst, confirmed that: The continuation of the stability of oil prices above the level of $ 80 a barrel, which achieves the level of parity for the budget of most of the Gulf markets, as the barrel of Brent crude is trading at about $ 97 a barrel, which supports the Gulf markets and positively affects the profitability of companies, especially oil.

The performance of most Gulf stock exchanges varied, and the Kuwaiti and Saudi markets rose - Al Borsa Newspaper

Outside the region, the main index “EGX30” for the Egyptian Stock Exchange rose by 1.87% to end this week’s trading at the level of 10,010 points. Hossam Eid, a financial market expert, predicted that The main index of the stock exchange continues to reap more gains and target a level that exceeds 10,200 points, supported by the continued activity of the leading stocks and the tendency of Egyptian and Arab financial institutions to buy. new. The Egyptian Stock Exchange was closed last Thursday due to an official holiday.

Doaa Zeidan, stock trading expert at Tycoon Securities Brokerage, said: The main index of the Egyptian Stock Exchange is in a sideways trend between the level of 9600 to 10280 points due to poor liquidity affected by the exit of liquidity from emerging markets by foreigners as a result of the Fed’s continuing to raise interest rates. She explained that the stock exchange rose recently, a purely selective movement on some strong financial stocks that achieved growth in profits and made good dividends. She pointed out that the stock market needs in the coming period to enhance the levels of liquidity in order to continue its upward path, which will only come with the presence of actual incentives and positive news such as the abolition of the capital tax or a new offering from government companies.

How does the Egyptian Stock Exchange attract companies worth more than 25 billion pounds?  - Economy Plus

The rise in the Arab stock markets during that period came in harmony with the rise of most global stock exchanges, led by “Wall Street” with the support of the improvement in risk appetite among investors. However, the rise in bets to raise interest rates strongly and monitor the repercussions of the crisis between Russia and the United States due to the increase in military operations in Ukraine may slow the pace of gains during this month’s trading.

Stock market information on the New York Stock Exchange floor on Friday, April 29, 2022. The performance of US stock indexes was mixed at the close of Friday, August 5, after the US jobs report, which increased speculation of a sharper rate hike at the upcoming Federal Reserve meeting.

Globally, most US stock indices recorded a weekly rise, as the broader Standard & Poor’s 500 Index increased by 1.5% to 3,639 points, and the Dow Jones Industrial Average increased by 2%, to reach 29,296 points.

The Nasdaq Composite Index of technology shares rose 0.8%, to 10,652 points. The European Stoxx 600 index gained 1% to 391 points.

And Daboura, the financial advisor, Taher Morsi, suggested that global stock markets would not continue to rise clearly during the coming period, in light of an unexpected drop in the unemployment rate and thus the continued strength of the American labor market, which supports speculations of continuing to tighten monetary policy to confront inflation.

It is noteworthy that the global stock exchanges ended last Friday’s trading with a decline, which confirms the expected fluctuations in them, as the “Dow Jones” industrial index fell by 2.1% and the “Standard & Poor’s 500” decreased by 2.8%.

The Nasdaq fell 3.8%, the European Stoxx 600 index fell 1.2%, and the German DAX fell 1.6%. In Japan, the Nikkei index fell 0.7%, and the broader Topix index fell 0.8%.

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