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Qatari stocks lead the losses of the Gulf markets… their biggest weekly decline in two years

Thank you for reading. Read the news: Qatari stocks lead the losses of the Gulf markets… their biggest weekly decline in two years

Basrawi News Encyclopedia – Books: Rania Muhammad / Qatari stocks led the decline of the Gulf stock exchanges, today, Thursday, to record the largest weekly decline in more than two years, amid investors’ fears that raising interest rates with the aim of curbing inflation would lead to a state of economic stagnation.

Federal Reserve Chairman Jerome Powell said on Wednesday that the United States is not planning a recession in order to stop rising inflation, but is fully committed to curbing prices even if that threatens an economic downturn.

A Reuters poll expected the US central bank to raise interest rates by 75 basis points in July, followed by a half percentage point hike in September, and the increase would not decline to a quarter of a percentage point before November.

In Qatar, the Doha Stock Exchange index closed down 1.6 percent, with most stocks declining. Industries Qatar fell 4.4%. The index recorded a weekly decline of 6.4%, which is the largest weekly decline since March 2020.

Dubai’s main index closed down 1.1%, with Emaar Properties down 1.9%.

In Abu Dhabi, the index fell 0.6%, with the share of E & Group (formerly Etisalat) declining 1.5%.

The main index in Saudi Arabia fell by 0.1% to 11,310 points, and the share of Sahara International Petrochemicals fell 3.2%.

Outside the Gulf region, Egypt’s leading stock index fell 1.8%, with Commercial International Bank (CIB) dropping 3%.

Alaa Al Ibrahim, Head of Capital Markets Funds Sector at Alawwal Capital, said that the current conditions are exceptional and make it difficult to predict while confusing large investors before their small ones, expecting that the pace of interest increases will continue to put pressure on local and global markets.

In an interview with Al Arabiya, he stressed that market conditions require caution in the absence of indications of the end of the correction period. On the other hand, he saw that the Saudi market situation is positive in terms of the strength of the Kingdom’s economy, active leading companies, and the expected positive growth rates, in addition to the acceptable inflation rate of less than 3%.

He considered that US monetary policy is subject to the influence of political goals, and said that the US administration sacrifices the US and global economy to a large extent.

He added that there are fears of rising interest rates and their impact on demand, considering that the solution to the problem of inflation should be through increasing production and not raising the interest rate.

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