Equities in the Middle East imitated the global stock markets, taking a plunge as central banks raised interest rates to fight off soaring inflation.
The UAE and Saudi central banks raised interest rates, hours after US Federal reserve increased its rate, the highest in nearly 30 years.
Finance and Energy dip Saudi Stock
Financial and energy sector shares dipped sharply, dragging down the Saudi Stock Exchange’s main index by 2.2 percent on Sunday (June 12, 2022). Shares of Aramco and Al-Rajhi Bank both fell more than 1 percent.
TASI fell by 2.1 percent to 12,053.44 points on Monday (June 13, 2022) as oil prices fell and rising concerns about US interest rate increases arose due to high inflation in the United States.
On Tuesday (June 14, 2022), the index fell by 0.8 percent, while Saudi Aramco fell by 1.4 percent.
The index also dropped by 0.4 percent on Wednesday (June 15, 2022).
Al-Rajhi Bank’s share price fell by 3.7 percent on Thursday (June 16, 2022), dragging down the Saudi Stock Exchange’s main index by 1.3 percent for the fifth day.
Abu Dhabi Securities Exchange keeps dropping
On Monday (June 13, 2022), the leading Abu Dhabi Securities Exchange index fell by 1.7 percent to close at 9407.3 points.
For the tenth session in a row, it fell by 0.1 percent on Tuesday (June 14, 2022).
The Abu Dhabi index rose by 0.4 percent on Wednesday (June 15, 2022), thanks to a 0.6 percent rise in E& Telecom (formerly Etisalat Group) shares.
A 0.9 percent drop in First Abu Dhabi Bank’s share price caused the fall of the Abu Dhabi index by 0.8 percent again on Thursday (June 16, 2022).
The Abu Dhabi index ended Friday (June 17, 2022), trading lower by 0.6 percent to 9,391 points, with First Abu Dhabi Bank’s share falling 1.1 percent and Aldar Properties’ share falling 2.5 percent.
Banks and Real Estate impact Dubai’s Exchange
Monday (June 13, 2022) saw a 2.64 percent drop in the Dubai Financial Market Index, dropping 89.40 points to close at 3,287.10 points.
In comparison, Tuesday (June 14, 2022) saw a 0.6 percent increase in the index due to gains in Dubai Islamic Bank and Emaar Properties.
A 2.3 percent increase in Dubai Islamic Bank’s share helped lift the index by 1.2 percent on Wednesday (June 15, 2022).
Emaar Properties stock dropped by 1.3 percent, and Dubai Islamic Bank’s stock dropped by 3.6 percent on Thursday (June 16, 2022), hurting the main index by 1.7 percent.
The index also fell by 0.6 percent to 3,262 points on Friday (June 17, 2022), impacted by a 2.8 percent drop in Emaar and a 1.9 percent drop in Air Arabia.