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From: Mahmoud Jamal
Mubasher: Analysts expect Mubasher to control the bulk of Gulf market performance during the Tuesday and Thursday session as the federal interest rate decision was anticipated as expectations had risen for the first time since the beginning of the global financial crisis In 2008.
At Monday's session, most of the Gulf markets, dominated by the Dubai financial market, had risen The highest level since 2008 was supported by Emaar Properties After reaching a high performance that had not been seen since August 2018 In contrast, the Saudi market fell to be in the general index "Tadawul", the worst daily performance of a month ..
Investors around the world are delighted with the Federal Reserve's decision to open its meeting on Wednesday night to announce the results of the meeting Wednesday night, as the bank expects a reduction in rates of interest. interest for the first time in ten years..
Portfolio Performance
Mina Mustafa, member of the Scientific Committee of the African Economic Council, said the Gulf markets were going through a technically important phase for the indicators: on the one hand, the news to come, supplemented by the decision of the Reserve Federal Reserve Providing Interest Rate Reductions After Four Years of Semi-Continuous Raise.
The publication of semi-annual results for companies listed on the Gulf markets is one of the main factors on which many investors rely during the current period..
It expects that forecasts of the performance of certain portfolios in the markets, especially the Saudi market, will experience temporary declines that will not persist during the remaining sessions of the week and that will not persist, depending on the trajectory general index technique and business data..
In a performance contrary to expectations, the general index of the Saudi market fell by 1.47%, or 30 points, to reach 8729 points, led by Al Rajhi (3%) and SABIC after a fall of 1.6% and the lowest quarterly profitability since the end of 2009..
Mid-term results play an important role in determining the overall trend of the Saudi stock market, as unexpected market declines coincided yesterday with the publication of consolidated results of banks in Saudi Arabia, which were lower than expected in June ,.
According to the report "Sama", Profits of Saudi banks declined at the end of the month June/ At SAR1,449 billion, recording the lowest levels recorded in 2019, approximately 70% on a monthly basis compared to the profit of RMB 4.788 billion in May.
Mona Mustafa said the decline in the sector would be temporary and that Saudi banks would regain their luster with good results. Stressing that today 's session will be decisive for the orientation of the general market index, which fell yesterday without 8800 points.
She pointed out that the selling pressures experienced by some stocks, especially the real estate sector, could contribute to the entry of the index in the region. 8600 A point that then returns to the highs that can push him to overtake 9000 Point again.
Gulf markets are subject to limited profit-taking operations targeting large stocks, noting that liquidity levels are still modest, noting that UAE stocks are the most attractive for foreign institutions..
And waited for the persistent optimism of dealers in the UAE markets, especially with the announcement of positive business results for companies that will support the movements of leaders likely to continue to show positive performance during the week in course.
Provision for Zakat
For his part, Mohammed al-Shammimi, an economist and Saudi equity market badyst, explained that the reasons for the market's decline yesterday and its instability during the week were due to the adjustment of the equity deduction mechanism. the Zakat from the tax return instead of being deducted from the shareholding..
Al-Shammari said that the emergence of the Zakat deduction started from the first half of the list of income banks would reduce profits by 10%, pointing out that this decision would negatively affect the profitability of bank shares, and evaluate their prices and will change the valuation of bank shares.
He added that this would affect the profitability of the market as a whole, as bank profits accounted for 61% of total profits in the first quarter of this year..
Break events
For his part, the economic adviser of the Gulf financial markets, Ibrahim al-Failakawi, said that fluctuations and inequalities could persist in the Gulf markets in the light of the anticipation that dominates world markets, which has experienced a decline yesterday..
He pointed out that the next few days until the end of the week were a comma for the evolution of global markets and the region as a whole, in the expectation of the Federal Reserve's historical investors. in the world, in expectation of increasing interest after more than a decade of the 2008 global financial crisis.
He said the foreign portfolio was very interested in discussions between US Treasury Secretary Stephen Munchon and US Trade Representative Robert Leitzer with China, where the two officials traveled to Beijing for talks on the commercial dispute. Talks blocked since May.
Also this week, global equity market investors around the world expect US employment data to appear to require more lower interest rates and additional data on the US economy. global manufacturing sector in the face of recessionary industry concerns. Monetary policy in Japan to reduce interest rates and the Brazilian central bank will make a decision in this regard this week.
appointments:
Localization and fees reduce the number of foreign workers in Saudi Arabia
Foreign exchange reserves of Saudi Arabia abroad increase by $ 6.3 billion at the end of June
Kuwait's budget deficit dropped 31% last year
61 Billion oil revenues from Kuwait in 2018/2019
The expansion of "Dana Gas" in Iraq has exceeded the "Mubasher" of the United Arab Emirates .. Today
Equatorial Guinea exempts Emirati from the obligation to obtain a visa
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