Dubai, UAE— It was a mixed week of gains and losses for the GCC equities, as UAE bourses posted gains while the Saudi equities took a tumble under selling pressure.
For the third week, Saudi stocks declined, closing at 11,834 points, a loss of 308 points or 2.5 percent and the lowest level in two months. This is the longest weekly run of drops since June.
The market dropped 12,000 points, leaving it more susceptible to selling pressure unless buyers return at the start of next week (which starts tomorrow, Sunday).
While the market did drop for three consecutive weeks beginning in 2020 when the epidemic started, it quickly recovered. And the fall for a fourth week may imply that dealers’ preferences have shifted to favor selling.
However, this week’s trading sessions in the United Arab Emirates finished on a high note, with the Abu Dhabi market continuing its ascent on the strength of significant companies near the level of 3800 points and in tandem with the rise in global oil prices.
The financial markets in the United Arab Emirates had a net inflow of $6.45 million from international investors in both the Dubai and Abu Dhabi stock exchanges.
Uncertain week for Saudi stocks
On Sunday (September 4, 2022), the Saudi stock market gained 52 points, or 0.4 percent, closing at a new record high of 12194 points. This increase was aided by gains in the petroleum and basic materials sectors.
However, trade on the Saudi stock market decreased on Monday (September 5, 2022) by 0.8 percent as the banking and public utilities sectors declined, resulting in a loss of 94 points and a new low of 12,099 points for the market.
Additionally, Saudi equities dropped by 0.9 percent on Tuesday (September 6, 2022), with declines across the banking and basic materials sectors contributing to a total loss of 105 points in the trade that brought the Saudi stock market to a closing price of 11,995 points.
The market closed down 1.1 percent on Wednesday (September 7, 2022) with pressures from basic materials, banking, and energy.
Also, on Thursday (September 8, 2022), the “TASI” main index closed the week down 0.8 percent due to selling pressure from banking stocks. The country’s largest lender, the National Bank of Saudi Arabia, had its share price drop by 1 percent, while the share price of Banque Saudi Fransi dropped by 1.4 percent.
Good week for Abu Dhabi stocks
On Monday (September 5, 2022), the benchmark index for Abu Dhabi’s stock market dropped 0.7 percent, closing at 9682. Global Holding gained 0.95 percent, First Abu Dhabi dropped 1.19 percent, and AlfaDhabi gained 0.73 percent in response to the market’s performance.
The market index was down 0.29 percent at 9,653 points on Tuesday (September 6, 2022). The total trade volume was 181.28 million shares. Market performance was accompanied by Global Holding’s stability, while First Abu Dhabi declined by 0.4 percent and AlfaDhabi decreased by 0.7 percent.
However, on Wednesday (September 7, 2022), the Abu Dhabi market index rose 0.6 percent, closing at 9714.
On Thursday (September 8, 2022), the index also increased by 1 percent, with gains helped by a 1.5 percent increase in First Abu Dhabi Bank’s share price and a 2.3 percent increase in International Holding Company’s share price.
The Abu Dhabi Stock Exchange Index finished Friday (September 9, 2022) trading at 9797, up 0.11 percent from the previous day. The total number of shares traded in the Abu Dhabi market was 148.37 million. With the International Holding Company and First Abu Dhabi holding steady and AlfaDhabi rising by 0.24 percent, the market’s performance improved.
Mixed performance by Dubai stocks
Twenty-three different equities contributed to a 1.1 percent drop in the Dubai Financial Market Index on Monday (September 5, 2022), which stood at 3,354 points.
The index at the Dubai Financial Market increased by 1.2 percent on Tuesday (September 6, 2022), to 3396 points, thanks to the gains of 21 individual stocks.
Meanwhile, on Wednesday (September 7, 2022), 22 stocks contributed to a 0.4 percent drop in the Dubai Financial Market Index, which closed at 3382. On the other hand, leading real estate and banking stocks, including Emaar Properties (up 1.2 percent) and Dubai Islamic Bank (up 0.7 percent), boosted the main stock index by 0.2 percent on Thursday (September 8, 2022).
On Friday (September 9, 2022), 11 stocks contributed to a 0.04 percent increase in the Dubai Financial Market Index, which closed at 3,360.