The UAE and Saudi stock exchanges posted losses this week, taking cue from the world markets that fell in reaction to galloping inflation, and rate hikes by central banks in many countries.
After reaching its highest level since 2006 at the beginning of the , the Saudi Stock Exchange index fell by 4.1 percent to finish the week at 12835.30 points.
On the other hand, the UAE stock exchanges went up on Friday, after dropping the day before because people were worried about high inflation and the effects of raising the interest rate. However, both Dubai and Abu Dhabi stocks faced losses this week.
TASI closes low
The index of the Saudi Stock Exchange went up on Sunday, May 8, 2022, when trading resumed after a week off for Eid Al-Fitr, due to the rise in oil prices. As a result, the main index of the Saudi Stock Exchange went up by 0.6 percent at the end of the day. In addition, al-Rajhi Bank went up by 1.8 percent, and the oil giant Saudi Aramco increased by 2.1 percent. As a result, the Saudi index reached its highest level since 2006 on Monday.
On the other hand, the Saudi index lost its early gains on May 9, 2022, and ended the day unchanged.
The “TASI” index fell by 2.2 percent on Tuesday, May 10, 2022, after having its most significant one-day drop since late November. Al-Rajhi Bank was the biggest loser, falling by 4.1 percent. On Tuesday, May 10, 2022, it lost the most it had in more than five months. On Wednesday, May 11, 2022, it fell another 1 percent. In addition, the Saudi Basic Industries Corporation (SABIC) stock went down by 2.5 percent.
The drop in markets worldwide caused the Saudi stock index to drop sharply on Thursday, May 12, 2022, by 4.1 percent to 12,835.30 points. The price of Aramco stock fell by 1.8 percent to less than US$ 12.
Hard week for the Abu Dhabi Securities Exchange
On Monday, May 9, 2022, the share price of First Abu Dhabi Bank fell by 2.2 percent, which put pressure on the Abu Dhabi index, which fell 0.7 percent. On Tuesday, May 10, 2022, the index fell by another 0.9 percent. And it went down by 1.2 percent on Wednesday, May 11, 2022. This was because the share of First Abu Dhabi Bank went down by 3.8 percent.
The shares of First Abu Dhabi Bank, the biggest bank in the Emirates, fell by 8.5 percent, which made the Abu Dhabi index drop by 5.8 percent. This was the most significant daily drop since March 2020.
The Abu Dhabi index went up by 2.9 percent on Friday, May 13, 2022. This made up for some of the losses from the previous session when it dropped by more than 5 percent, which was the most significant drop in a single day in more than two years.
Emaar and NBD lead Dubai’s Stock
On May 9, 2022, the main index of the Dubai Stock Exchange fell by 2 percent. This was because the leading shares of Emaar Properties fell by 2.7 percent and those of Emirates NBD Bank fell by 2.3 percent. It fell by 0.7 percent on Tuesday, May 10, 2022, due to the decrease in the Emirates NBD Bank by 3.1 percent and Emaar Properties by 1 percent.
The Dubai Stock Exchange index fell by 1.9 percent on Wednesday, May 11, 2022, due to the decrease in the Emirates NBD Bank by 3.5 percent and Emaar Properties by 1.8 percent. And it went down by 5.7 percent on Thursday, May 12, 2022, with blue-chip Emaar Properties going down by 8 percent.
On the other hand, the Dubai Stock Exchange index increased by 2.8 percent on Friday, May 13, 2022, due to the increase in Emirates NBD Bank went up by 3.4 percent and Emaar Properties by 2.9 percent.