Saudi stock market rebounds, Egyptian market fall following fuel price hike

(MENAFN) On Sunday, Saudi Arabia’s stock market experienced a notable rebound, ending a four-day losing streak as U.S. economic data revealed a more favorable inflationary environment. The data, which indicated a moderate rise in U.S. prices for June, raised expectations that the U.S. Federal Reserve might start reducing interest rates as early as September. The Fed has maintained its benchmark overnight interest rate between 5.25 percent and 5.50 percent since last July, having increased rates by 525 basis points since 2022.

In the Saudi market, the benchmark index surged by 1.2 percent, bolstered by gains in major stocks. Aluminum producer Al Taiseer Group saw its shares rise by 3.5 percent, while Al Rajhi Bank climbed 2.8 percent. Meanwhile, Qatar’s index increased by 0.4 percent, with shares of Qatar Petrochemical Industries Company gaining 0.8 percent.

Conversely, Egypt’s stock market faced a downturn. The blue-chip index fell by 0.2 percent, primarily due to a 1.5 percent drop in Talaat Moustafa Group’s shares. This decline followed a recent increase in fuel prices announced by Egypt’s official gazette. The price hikes came just days before the International Monetary Fund is set to conduct a third review of Egypt's USD8 billion extended loan program. 

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