(MENAFN- Your Mind Media ) 16th April 2024
Stock markets in the GCC experienced declines today, influenced by concerns about geopolitical tensions and recent US data, which indicated a risk for interest rates to remain high for longer.
The Saudi stock market saw a significant drop today, reversing some of the gains made last week and earlier this week, weighed by banks as geopolitical tensions remain. The energy sector saw an important decline, with Aramco's shares falling to their lowest level since April 2023. In addition to the impact of oil prices, Aramco could remain weighed by reduced profits due to lower sales volumes and weaker refining margins, as well as higher dividend payouts. Moreover, Saudi oil production cuts and the transfer of part of Aramco shares to the sovereign wealth fund could exert further pressure.
The Dubai stock market breached the support level it had maintained for the past month, affected by both geopolitical tensions and heightened inflationary pressures in the US. The market may continue its downward trajectory if these pressures persist. However, the upcoming IPO of Spinneys could positively influence the overall market sentiment.
The Abu Dhabi stock market continues to hover near its support level, while geopolitical tensions and corrections in the oil market could hinder any significant rebound.
The Qatari stock market also reported losses, reversing some recent gains amid today's broadly negative market sentiment. The banking sector was mixed but contributed negatively to today's market performance.
MENAFN17042024006667014463ID1108103908
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.