Stock markets in the Gulf ended mixed on Thursday on worries that stubborn U.S. inflation could keep interest rates higher for longer, with the Saudi index posting its biggest weekly loss since early August.
Saudi Arabia’s benchmark index declined 0.7%, dragged down by a 1.5% fall in Al Rajhi Bank and a 1% drop in Dr Sulaiman Al-Habib Medical Services.
The International Monetary Fund expects GDP growth in Saudi Arabia to slow further from the current 1.9% forecast to reflect the latest extension of oil production cuts, an agency official said, even as non-oil growth is seen remaining strong.
On the flip side, Saudi Telecom Company (STC) finished 1% higher, a day after declining 2.2%. Spain is analysing STC’s purchase of a 9.9% stake in Telefonica to ensure that its strategic interests are upheld, signalling a potential hurdle.
The Saudi index posted a weekly loss of 2.4%.
Gulf markets end lower amid volatile oil prices; Egypt gains
Dubai’s main share index gained 0.5%, ending three sessions of losses, led by a 5% jump in Emirates Central Cooling Systems.
In Qatar, the benchmark advanced 1%, as most of the stocks on the index were in positive territory including petrochemical maker Industries Qatar, which gained 3%.
The Qatari stock market stabilized to a certain extent after recording losses during the last few weeks, returning to the lower end of this year’s range, said Khaldoun Hilal, chief executive officer at KAMA Capital.
“However, it could remain exposed to the volatility in natural gas prices.”
Outside the Gulf, Egypt’s blue-chip index closed 0.8% higher.
Headline inflation in Egypt is expected to surge to a new record high in August after having broken records in both June and July, a Reuters poll showed on Tuesday, with tobacco, culture and recreation prices increasing.
====================================== SAUDI ARABIA lost 0.7% to 11,216 ABU DHABI rose 0.5% to 9,660 DUBAI added 0.5% to 4,059 QATAR gained 1% to 10,238 EGYPT up 0.8% to 19,376 BAHRAIN eased 0.1% to 1,942 OMAN lost 0.7% to 4,690 KUWAIT was up 0.7% to 7,691 ======================================
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