Saudi Bourse Extends Losses While Egypt’s Market Gains Strength

The Saudi stock market fell for the fourth consecutive session on disappointing earnings, with TASI down 0.6%. Conversely, Egypt’s EGX30 rose 0.8%, led by gains in major companies, including Fawry. Oil prices dropped amid geopolitical tensions and market concerns. Egypt’s M2 money supply significantly increased by 32.1% year-on-year in January.

The Saudi stock market concluded lower on Sunday, marking its fourth consecutive session of losses due to unsatisfactory corporate earnings. The benchmark index, TASI, declined by 0.6%, influenced by a 0.4% drop in Al Rajhi Bank and a notable 3.4% decrease in Riyad Bank. Furthermore, Saudi Tadawul Group experienced a 0.5% decline after failing to meet analysts’ expectations for annual profit.

In a different context, oil prices experienced a decrease on Friday, attributed to ongoing discussions between the U.S. and Ukrainian presidents and concerns over impending tariffs from Washington as well as Iraq’s decision to resume oil exports from the Kurdistan region.

Conversely, Egypt’s blue-chip index, EGX30, gained 0.8% on Sunday, reversing a four-day declining trend. This growth was supported by a rise in the Commercial International Bank of 1.1% and a 4.4% jump in Fawry for Banking Technology and Electronic Payment, bolstered by anticipated profit increases in 2024. Additionally, E-Finance for Digital and Financial Investments reported a significant 2.7% rise following a boost in their fourth-quarter profit.

On the monetary front, Egypt’s M2 money supply saw a substantial increase of 32.1% year-on-year in January, as reported by central bank data. Note that Qatar’s stock market remained closed due to a public holiday.

In summary, Saudi Arabia’s stock market continues to face challenges with declining prices driven by disappointing corporate earnings, specifically from key financial institutions. Meanwhile, the Egyptian market shows resilience, buoyed by positive company performance and increased money supply. Overall, these mixed results highlight the diverging economic conditions in the region.

Original Source: www.tradingview.com