Equities in the GCC posted modest gains this week amid concerns about surging global inflation and how central banks across the world found upping interest rates a tool to tame it.
First Abu Dhabi Bank’s and the real estate sectors’ declines contributed to the overall index’s fall at the start and end of the week on the Abu Dhabi Securities Exchange.
On the other hand, the banking sector helped the general index of the Dubai Stock Exchange recover from a 0.7 percent loss on Monday to end the week up 1.1 percent.
Saudi Index: Mixed performance
On Sunday (July 24, 2022), the Saudi Stock Exchange ended the trading day at 11,975 points, down 0.1 percent, with a trading value of US$ 1.33 bn. There was an increase in share price for 142 companies and a decrease for 60 others.
The benchmark index for the Saudi stock market fell by 100.92 points on Monday (July 25, 2022), marking a downward trend.
On Tuesday (July 26, 2022), “TASI” gained 0.7 percent, or 89.99 points, to end at 11,964.21 points. Fifteen of the index’s constituent sectors also saw gains, with public utilities witnessing the most significant increase (3.6 percent), followed by investment and finance (1.7 percent), media and entertainment (1.4 percent), health care (1.2 percent), and banking (0.8 percent).
The market index gained 0.8 percent, or 87.97 points, on Wednesday (July 27, 2022). While on Thursday (July 28, 2022), the index closed at a new weekly high, following the lead of gains in the banking and basic materials sectors.
ADX closes the week declining
Shares of First Abu Dhabi Bank closed down 1.6 percent on Monday (July 25, 2022), contributing to a 0.8 percent decline in the main index of the Abu Dhabi Securities Exchange. On Tuesday (July 26, 2022), the index fell by 0.4 percent, primarily due to a 1.7 percent decline in E& (formerly Etisalat).
ADNOC Drilling’s announcement that it had won contracts worth two billion dollars was a significant factor in Wednesday’s (July 27, 2022) 0.3 percent increase in the Abu Dhabi index.
The ADX General Index lost 0.1 percent, or 14.94 points, to close at 9542.44 points on Thursday (July 28, 2022) but recovered and rose 1.1 percent, or 106.52 points, the following day (Friday, July 29, 2022).
Telecommunications led the way with a 2.8 percent gain on Friday, followed by the basic materials sector with a 2.5percent increase and the real estate sector with a 1.43 percent growth.
Dubai’s index closes higher on Friday
On Monday (July 25, 2022), the Dubai Stock Exchange’s main index fell 0.7 percent due to declines in both the leading real estate company, Emaar Properties (-2.2 percent), and the Emirates Integrated Telecommunications Company, du (-1.4 percent).
Dubai’s main index finished Tuesday (July 26, 2022) up 0.4 percent, with Emaar Properties leading the way with a gain of 1.1 percent.
Furthermore, the leading Emaar Properties company rose by 1.5 percent, and Dubai Islamic Bank increased by 9 percent on Wednesday (July 27, 2022).
On Thursday (July 28, 2022), the index gained 1.24 percent or 40.67 points. Financial and investment services led the way with a 2 percent gain, followed by the banking sector with a 1.6 percent gain, on the Dubai Stock Exchange’s broad index.
As of Friday’s close of trading (July 29, 2022), the index had gained 1.1 percent or 36.76 points, while five sectors on the Dubai Stock Exchange increased, led by banks (+2.1 percent).