Most Gulf stock markets declined in trading on Sunday, amid clear pressures resulting from reduced expectations of a US interest rate cut in the near term.
This has been reflected in investor sentiment in the region
and in the shares of sectors sensitive to interest rates.
In contrast, the Egyptian stock exchange recorded notable gains,
supported by strong buying by institutions.
Saudi Arabia leads the declines
The Saudi market led the declines, according to Reuters,
with the general index affected by a drop in bank and petrochemical stocks.
This comes after a rise in US bond yields and growing expectations
that the US Federal Reserve will maintain a tight monetary policy for a longer period.
The Qatari market also declined as a result of the drop in bank and real estate stocks.
Meanwhile, the Abu Dhabi stock exchange recorded a limited decline as energy stocks fell.
As for the Dubai Financial Market, it witnessed a mixed performance,
as pressures on real estate and banks imposed a general downward trend.
This is despite some defensive stocks recording relative stability.
Analysts believe that delaying interest rate cuts reduces investors’ appetite
for risk and affects the cost of financing for Gulf companies.
The main index rises
In contrast, the Egyptian stock exchange bucked the regional trend,
recording a remarkable rise with the main index climbing,
supported by banks and consumer sectors.
Analysts attribute these gains to the continued flow of domestic liquidity.
In addition to investor optimism regarding ongoing economic reforms
and the increased attractiveness of Egyptian stocks following the previous price decline.
Experts confirm that the movement of Gulf markets will remain linked
to developments in US monetary policy in the coming weeks.
Meanwhile, attention is turning to anticipated economic data that
could reshape expectations for global interest rate cuts.
