Egypt recoups some losses
Saudi loses momentum
DUBAI, Sept 25, (RTRS): Egyptian stocks closed on a positive note on Wednesday, recovering some losses from the previous sessions, while Saudi retreated amid falling oil prices on the backdrop of global political uncertainty.
Egypt’s blue-chip index rebounded sharply to close 3.2% higher, snapping an eight-session losing streak, with 29 out of 30 stocks on the index rising. The country’s largest lender, Commercial International Bank, jumped 5%, while Eastern Company advanced 4.7%. Exchange data showed foreign investors were net buyers of the stocks.
The index had lost over 10% in the previous three sessions following protests that broke out in several Egyptian cities over the weekend.
Egyptian authorities rounded up more than 400 people in response to the protests, against President Abdel Fattah el-Sisi, and security forces stepped up their presence in central Cairo, human rights monitors said on Monday.
Meanwhile, Saudi’s index slipped 0.5%, ending four straight days of gains with Samba Financial Group declining 2.8% and Banque Saudi Fransi closing 3.5% lower.
The index gained momentum in previous sessions as Saudi stocks were due on Monday to join the FTSE Russell index in their fourth of eventual five tranches and the S&P Dow Jones index in the second and final phase.
But investors offloaded risky bets following an impeachment inquiry launched against US President Donald Trump, stoking political uncertainty in the world’s largest economy.
Democrats in the US House of Representatives on Tuesday launched a formal impeachment inquiry into accusations that Trump sought foreign help to smear Democratic rival Joe Biden ahead of next year’s election.
A drop in Saudi crude loadings in September also weighed on investor sentiments. Saudi Arabia’s crude exports fell steeply following the Sept. 14 attacks and remain lower month-on-month, according to export figures, a tangible sign that supplies to the market are being curbed even as production recovers.
In Qatar, the index closed 1.2% higher, ending a four-day losing streak. Gulf’s largest lender, Qatar National Bank, added 1.2% and Qatar Islamic Bank increased 1.5%.
Rating agency Moody’s on Tuesday said the outlook for Qatar’s banking sector remained stable as infrastructure spending drives economic growth.
Abu Dhabi’s index edged up 0.2%, with market heavyweight First Abu Dhabi Bank gaining 0.8% and Emirates Telecommunications Group adding 0.6%. Dubai’s index traded flat as gains in financial shares were offset by declines in real estate. Blue-chip developer Emaar Properties was down 0.6%, while Dubai Islamic Bank was up 0.8%.