Gulf Scholarships in the range of "Federal" decisions

From: Mahmoud Jamal

Mubasher: Analysts expect Mubasher to continue posting uneven results on Wednesday and Thursday, with concerns over China-China trade war due to recent comments by Trump and investors waiting for the Fed's historic decision.

By the end of Tuesday's session, most Gulf markets advanced, pulled by the Saudi Stock Exchange, which rebounded after posting the worst performance of the day in a month, supported by the results of listed banks, while Dubai's financial market continued to grow after reaching its highest level in a year thanks to support from Emaar Properties.

On the subject of the trade war, US President Donald Trump yesterday criticized China in a tweet on his official Twitter site, coinciding with the arrival of an American delegation including US Trade Representative Robert Laitheiser and Treasury Secretary Stephen Menuchin in Shanghai to discuss the return of negotiations after a fierce trade war..

As investors turn to the entire world to make the "Central American" decision of the US Federal Reserve, which will end its meeting tonight while we expect the rate to be lowered for the first time in ten years.

Sharp rise

Mubasher's chief executive, Mubasher, said: "The sustained attention of global markets and Gulf countries on the US Central Bank's decision regarding the interest rate is expected to fall..

"The Fed's landmark decision will initially have a major impact on the region's financial markets, which is expected to rise sharply if the reduction occurs, as the cost of trading will be lower and investors will increase their positions and return to the capital markets.

He pointed out that some major factors will affect the performance of the Gulf markets in the coming days, including the evolution of the trade war between the world's largest economic forces, which began with some concern after the recent "Trump "..

He pointed out that these factors are the medium-term results that have brought the Saudi market to erase the worst daily performance in a month and closing in green, stressing that the market must increase liquidity levels to exceed the significant levels, in particular 9000 points.

The Saudi index rose slightly by 0.1% to 8,741 points 1 2 A point of only 2.6 billion riyals. The rise is due to the good results of the banking sector of the banks Al Rajhi and Riyadh.

Al Rajhi rose 1 percent after the bank recorded an increase of more than 4 percent in the second quarter and an increase in private commission revenues. Riyadh Bank increased 2.4%.

Economic indicators

Ehab Rashad, an expert on capital markets, said yesterday's announcement by the Saudi finance ministry that the deficit would have been reduced by 86 percent and that good economic indicators would boost investor confidence. abroad, which has recently started to inject large investments in market shares. "Tadawul "coinciding with the listing on emerging global indices.

Saudi Arabia 's budget deficit in the first half of this year fell to 5.7 billion riyals, compared with 41.7 billion riyals for the same period last year. These figures reflect an impressive 86% reduction in the deficit.

According to the report of the Ministry, the total revenue of the general budget of Saudi Arabia increased by 15% during the first half of this year, while the total expenditure increased by 6% during the same period..

He stressed that the indicators contained in the Saudi budget confirm the accelerated pace of implementation of the transformation plan and development projects, as well as the rise in living standards and expenditures, in line with the vision of the Kingdom 2030..

In the coming months, MSCI will launch the second phase of the project Saudi equities listed on the Emerging Markets Index; Which could add additional flows of foreign funds between $ 6.3 billion and $ 8.2 billion.

"Emaar" leader

Regarding the UAE, Rashad explained that the UAE capital markets, especially those in Dubai" Had a record performance with the support of the shares of Emaar, which exceeded 5 dirhams and gained about 1.5% yesterday. The main shares have risen sharply since the company signed a preliminary contract for a new 11 billion dirham airport project..

The Dubai stock market was also boosted by the unexpected performance of the Dubai Financial Market (DFM), which reached its highest level since September 2018, up 5.1%. The company records good progress in its quarterly results.

A recent poll by Reuters revealed that Middle Eastern funds are planning to increase their investments in the UAE while remaining exposed to other countries in the region at current levels..

The Dubai market is nearing the end of today 's session with a gain of 7%, the best monthly performance in two years.

Prices are cheaper