Saudi Stock Market Prolongs Losses Amid Disappointing Earnings; Egypt Sees Gains
The Saudi bourse extended its losses for a fourth session due to poor corporate earnings, with TASI falling 0.6%. In contrast, Egypt’s EGX30 index rose 0.8%, buoyed by encouraging results from major companies. Other regional markets showed minor gains as well, while external factors impacted oil prices and market sentiment across the Gulf region.
On Sunday, the Saudi Arabian stock market continued its downward trend for a fourth consecutive session, primarily due to disappointing corporate earnings reports. The benchmark index, TASI, decreased by 0.6%, largely influenced by declines in major banks such as Al Rajhi Bank, which fell by 0.4%, and Riyad Bank, which saw a decline of 3.4%. Moreover, the operator of the Saudi stock exchange, Saudi Tadawul Group, experienced a 0.5% dip, as it failed to meet analysts’ expectations regarding its annual profits.
In contrast, Egypt’s stock market performed positively, with the EGX30 index gaining 0.8% and thereby breaking a four-day losing streak. The rise in the Egyptian index was supported by solid corporate earnings, with Commercial International Bank registering a 1.1% increase, and Fawry for Banking Technology and Electronic Payment surging by 4.4% following an optimistic profit forecast for 2024. E-Finance for Digital and Financial Investments also saw a substantial rise of 2.7% after reporting significant growth in its fourth-quarter profits.
Additionally, external factors affecting the markets were noted, with oil prices experiencing a decline due to ongoing geopolitical tensions and anticipated new tariffs from Washington. The Kurdistan region’s decision to resume oil exports further affected market sentiments. It should be noted that Qatar’s market was closed for a public holiday.
As of the latest figures, the TASI index in Saudi Arabia fell to 12,035 points, while Egypt’s EGX30 index reached 30,858 points. Furthermore, Bahrain’s BHBX index rose 0.6% to 1,971 points, Oman’s MSX30 increased by 0.1% to 4,441 points, and Kuwait’s BKP added 0.5% to reach 8,732 points. The exchange rate stood at $1 to 50.6000 Egyptian pounds.
In summary, the Saudi stock market experienced continued losses driven by unsatisfactory earnings reports, with the TASI index declining by 0.6%. Conversely, Egypt’s market showed resilience with a 0.8% gain in the EGX30 index, buoyed by positive corporate performance. This contrast highlights the divergent economic conditions in the region and the influence of international market dynamics on local exchanges.
Original Source: www.tradingview.com
