THE Saudi stock market was lower yesterday amid a general negative sector performance, ending the week in negative territory as downward pressure persists.
Caution prevailed among investors ahead of the US PCE inflation data release today. This report is critical for GCC markets, as US inflationary trends and their impact on monetary policy heavily influence the region’s monetary policies. Furthermore, oil prices, despite being relatively stable this week, continue to pose a risk to the Saudi market due to their current low levels.
UAE markets faced downward pressure yesterday. The Dubai stock market edged lower, continuing its recent sideways trading pattern. The market remains at risk of further selling pressure; a break below current support levels could trigger a more significant correction. Similarly, the Abu Dhabi stock market declined, with most sectors in the red, extending a limited correction into its fifth consecutive week following a period of strong gains. Low oil prices also represent a risk if they deteriorate further.
On its final trading day of the week, the Qatari stock market fell for a second straight session, retreating to key support levels last seen in early August. A breach of this level could lead to further losses. The market has now closed its second consecutive week with a negative performance as the corrective phase continues.
The Egyptian stock market finished the week on a muted note, trading nearly flat yesterday. Investors remained on the sidelines ahead of the central bank’s meeting, where there was optimism for a potential interest rate cut.
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