The Saudi Stock Exchange gave up gains recorded early in the session, to end trading today, Thursday, with a decline, recording its fourth weekly loss and its largest decline since October 2020, while the performance of the rest of the Gulf markets varied.
The Saudi stock market index fell 0.6%, ending two sessions of gains. Al-Rajhi Bank fell 0.4%, while the oil giant Aramco fell 1.1%.
Hussein Al-Raqib, director of the Zad Consulting Center, said, in an interview with Al-Arabiya channel, that investors are convinced of the high valuations of the Saudi market, which prompted the market to a natural correction, especially since the correlation coefficient between the market and oil performance was strong, and therefore it is in line with the declines in oil prices.
He pointed out that the funds intervened in the market, and raised the leading stocks, including Al-Rajhi shares, without the small stocks.
The censor believes that it is necessary to leave the market to correct naturally, and said, “Withdrawals from stocks are not very effective in the oil markets, and therefore I think that prices will continue to rise to $ 90, and the Saudi market should be left and in line with the movement of the oil markets.”
In a related context, the Abu Dhabi market index rose 0.7%, supported by an increase in the share of Alpha Abu Dhabi Holding by 2.4%, and a rise in the share of the Emirates Telecommunications Group (Etisalat) by 1%.
The Dubai Stock Exchange index rose 0.4%, supported by a 1% increase in the leading Emaar Properties share, and an increase in the Dubai Islamic Bank share and 0.8%.
Turkey and the United Arab Emirates signed investment agreements worth billions of dollars on Wednesday, including investments in technology and energy, after talks between President Recep Tayyip Erdogan and Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al Nahyan. Sheikh Mohammed’s visit to Ankara, the first in years, comes as the two countries seek to repair relations and amid a currency crisis in Turkey.
Outside the Gulf region, the leading stock index in the Egyptian Stock Exchange rose 0.7%, and the share of Talaat Mustafa Holding Group jumped 6.4%.
A statement by the Egyptian government quoted the Minister of Planning as saying yesterday, Wednesday, that the Egyptian economy grew 9.8% in the first quarter of the 2021-2022 fiscal year, which began in July, compared to 0.7% in the same period last year.
In detail, the Saudi market index closed, down 0.6%, to 11,299 points. While the Abu Dhabi index rose 0.7%, to 8,454 points, and Dubai 0.4%, to 3,170 points.
The Qatar Stock Exchange index settled at 11,791 points, and the Egyptian Stock Exchange index rose 0.7%, to 11,431 points, while the Bahrain Stock Exchange index declined 0.7%, to 1779 points.
In Oman, the Muscat Stock Exchange index rose 0.3% to 4,118 points, and the Kuwait Stock Exchange index fell 0.2% to 7,720 points.