Saudi Arabia’s stock market fell for the fourth straight session amid lackluster corporate earnings, with TASI decreasing by 0.6%. In contrast, Egypt’s EGX30 index rose by 0.8%, bolstered by positive financial results. Oil prices dropped following geopolitical tensions and market conditions, contributing to the broader market dynamics in the region.
On Sunday, Saudi Arabia’s stock market experienced continued declines for the fourth consecutive session, primarily due to underwhelming corporate earnings. The benchmark index, TASI, decreased by 0.6%, largely influenced by Al Rajhi Bank’s 0.4% drop and a notable 3.4% loss at Riyad Bank. Furthermore, the Saudi Tadawul Group saw a reduction of 0.5% after failing to meet analysts’ expectations for annual profits.
In contrast, Egypt’s blue-chip index, EGX30, rose by 0.8%, ending a four-day losing streak, bolstered by positive company performance. Notable advancements included a 1.1% increase in Commercial International Bank and a substantial 4.4% rise in Fawry for Banking Technology and Electronic Payment, following their favorable profit projections for 2024. E-Finance for Digital and Financial Investments also experienced a noteworthy gain of 2.7%, attributed to a significant rise in its fourth-quarter profit.
The performance of the broader market was further contrasted by a 32.1% year-on-year increase in Egypt’s M2 money supply as reported by the central bank. In the Gulf region, Qatar’s market remained closed due to a public holiday, while Bahrain and Kuwait saw slight gains of 0.6% and 0.5%, respectively. Oman’s index exhibited a modest increase of 0.1% as well.
Additionally, oil prices faced declines on Friday, influenced by discussions between the U.S. and Ukrainian presidents and the anticipation of new tariffs from Washington, alongside Iraq’s decision to resume oil exports from the Kurdistan region.
In summary, the Saudi stock market continued its downward trend due to disappointing earnings, whereas Egypt’s stock index showed signs of recovery thanks to strong corporate results. The divergent performances underscore the impact of financial reports on investor sentiment across the region. Overall, while Saudi Arabia faced challenges, Egypt’s positive economic indicators hinted at resilience in its stock market.
Original Source: www.tradingview.com
