By: Mahmoud Gamal
Mubasher: Analysts expected that GCC markets and Egyptian Exchange (EGX) would lose more of their force during Wednesday's trades, while global markets and oil are likely to fall again.
Oil prices levelled down on Tuesday, with Brent crude futures decreasing to $48.94 per barrel (pb) and US West Texas Intermediate (WTI) crude futures moving down to $46.39 pb.
Most GCC markets are likely to witness a downward performance during the remaining sessions of the week, with the fall of the global markets after announcements referred to a possible rate hike, Mahmoud Abou Zeid, financial analyst at Namaa Consulting, told Mubasher.
New York Federal Reserve president William Dudley said on Tuesday that a September rate hike is possible.
Industrial production rose 0.7% in July, to mark its highest monthly rise since November 2014, according to data released by the Federal Reserve.
Market analyst Fouad Darwish said that the Fed's announcement yesterday will have a negative impact on some listed companies, especially in the banks and real estate sectors.
He added that quick speculations became the controlling trend of the markets nowadays to benefit the most from the unstable situations.
GCC markets need real catalysts to be able to maintain their current levels and break through new ones, Darwish said.
As for market closings on Tuesday, Tadawul’s main index shed 0.5% to 6,329 points, while the DFMGI and the ADX index decreased 0.4% each to 3,587 points and 4,543 points, respectively.
The EGX30 index was down 0.8% to 8,387 points, while the QSE’s general index rose 2.2% to 11,371 points.
The general index of KSE added 0.3% to 5,507 points, while the indices of Muscat and Bahrain shed 0.3% and 0.6% to 5,887 points and 1,152 points, respectively.
Translated by: Sara Ghali
