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GCC stocks under pressure after OPEC+ decision

4th Mar 24 12:03 pm

GCC stock markets experienced mixed performance with downward pressures weighing on markets.

Recent OPEC+ decisions and increasing oil prices, alongside persistent geopolitical tensions, continue to influence market dynamics.

The Saudi stock market experienced losses for the second session this week as its largest stocks were in the red. The market reacted to OPEC+’s decision to extend its production cuts, which could affect the local economy and stock performances.

On a more positive note, SAL’s shares increased after it announced a 40% increase in profits in 2023 and a 15% dividend distribution. The Saudi market could remain exposed to more price corrections over the short term although further increases in oil prices could support sentiment and help extend the overall uptrend.

The Dubai stock market began the week on a negative note following last week’s strong performance, primarily led by declines in the financial sector, including Dubai Islamic Bank, Ajman Bank, and Commercial Bank of Dubai.

Conversely, the Real Estate sector continued to perform well. The Dubai stock market remains strong and bullish, with potential for further gains based on solid fundamentals and economic prospects.

The Abu Dhabi stock market was mostly unchanged after its rebound from last week’s low. The market could find support in additional improvements in oil prices, although geopolitical tensions remain a source of risks.

The Qatari stock market remained stable as well, with uncertainty prevailing over the last three sessions. The Banking sector showed mixed performances, while Nakilat’s stock declined amid ongoing geopolitical tensions.

While it maintained a short-term bullish trend, the Qatari market could be exposed to price corrections.

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