The Qatari index fell the most on Monday as the majority of stock markets in the Gulf finished lower due to investors’ disappointment with China’s most recent stimulus measures.
Most Gulf markets fall as China’s rate cut: Analysts had anticipated cuts of 15 basis points to both of China’s lending rates, but instead the central bank reduced its one-year rate by 10 basis points while leaving its five-year rate untouched.
In Qatar, the index fell by more than 1% as most of the index’s companies, including Qatar Islamic Bank, which was down 2.1%, were in the red.
With selling pressure on all market categories, downside risks were still there on the Qatari stock exchange. Energy price volatility may also have an impact on attitudes, according to Daniel Takieddine, CEO MENA at BDSwiss.
The benchmark index for Saudi Arabia gave up early gains to settle 0.8% lower, with oil behemoth Saudi Aramco suffering a 1.6% decline.
Separately, according to unidentified diplomatic sources cited by Kyodo news agency on Sunday, Japan is getting ready for a meeting of foreign ministers from Japan and the Gulf Cooperation Council (GCC) members in Saudi Arabia at the beginning of September.
The index in Abu Dhabi dropped 0.3%.
However, against the grain, Dubai’s main share index ended 0.1% higher thanks to a 1.2% increase in the city’s major lender, Emirates NBD Bank.
Outside of the Gulf, Commercial International Bank’s 1.9% decline caused Egypt’s blue-chip index to decline by 0.6%.
As traders continue to sell as trading volumes continue to decline, there are still risks of losses on the Egyptian stock market. According to Takieddine, the main index’s failure to surpass prior top may also have an impact on sentiment.
SAUDI ARABIA fell 0.8% to 11,408 ABU DHABI lost 0.3% to 9,776 DUBAI rose 0.1% to 4,054 QATAR dropped 1.1% to 10,460 EGYPT down 0.6% to 17,920 BAHRAIN added 0.1% to 1,963 OMAN was flat at 4,697 KUWAIT eased 1.4% to 7,700.