Gulf Stock Markets End Higher Despite US Debt-Ceiling Negotiations

Key Highlights :

1. Saudi Arabia's stock market is doing well overall, with some stocks rising 3%.

2. The stock market is starting to see some challenges to maintaining clear gains, likely due to concerns over the economy and oil prices.

3. International investors are still selling stocks, likely due to global concerns.

     Most stock markets in the Gulf ended higher on Wednesday as investors shrugged off concerns around the US government’s debt-ceiling negotiations. US President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy on Monday prepared for the critical debt-ceiling talks, with a little more than two weeks to go before the government could run short of money to pay its bills.

     Saudi Arabia’s benchmark index gained 0.6%, driven by a 3.6% jump in the country’s biggest lender Saudi National Bank and a 3% increase in Riyad Bank. Prices of oil - a key catalyst for the Gulf’s financial markets - were steady after a surprise rise in US crude inventories stoked demand concerns as economic worries competed with a tighter supply outlook for later in the year. However, oil giant Saudi Aramco finished 0.9% lower as the firm went ex-dividend.

     The Qatari index outperformed the region to close 2% higher, as most of the stocks on the index were in positive territory including Qatar Islamic Bank, which jumped 4.5%, following media reports that the Gulf state is planning to boost the stock market to attract foreigners. Dubai’s main share index snapped a four-session losing streak to finish 1.6% higher, with Emirates Central Cooling Systems advancing 3%. In Abu Dhabi, the index rose 0.5%.

     Outside the Gulf, Egypt’s blue-chip index declined 1.1%, with Sidi Kerir Petrochemicals Co retreating 6.7%. According to Gabi Dahduh, Senior Relationship Manager at CAPEX.com, the Egyptian bourse stabilized to a certain extent but continued to record losses as international investors’ remained sellers due to global concerns and a declining risk appetite.

     Overall, the Gulf stock markets ended on a positive note despite the looming US debt-ceiling negotiations. Saudi Arabia closed 0.6% higher, Abu Dhabi up 0.5%, Dubai gained 1.6%, Qatar advanced 2%, Bahrain was up 0.1%, while Oman and Kuwait slipped 0.3% and 1.1% respectively. The positive sentiment in the Gulf markets is a testament to the resilience of the region’s economy in the face of global economic uncertainty.

Continue Reading at Source : brecorder