Tadawul index bounces from technical support

10/11/2015 05:53 AST

Egypt's stock market went on sliding on Monday because of fears of a currency devaluation and higher interest rates, while most major Gulf markets rebounded. The Egyptian equities index, which sank 2.6 percent on Sunday, lost a further 2.8 percent on Monday. Strong US economic data at the end of last week suggested a rate hike there next month, pressuring the Egyptian pound.

Meanwhile, Egypt's two largest state banks launched Egyptian pound savings certificates with a high 12.5 percent interest rate. Traders speculated this could be part of preparations for the central bank to abandon a slow, managed depreciation of the pound and instead engineer a large, one-off devaluation.

Telecom Egypt, which as a telecommunications firm is seen as a defensive stock, outperformed, losing only 0.5 percent.

The Saudi stock index, which had dropped 0.6 percent on Sunday in response to the US interest rate threat, bounced from technical support at its August low of 6,921 points. It climbed 1.3 percent to 7,105 points.

Petrochemical blue chip Saudi Basic Industries Co. jumped 3.1 percent and insurer SABB Takaful added 4.9 percent.

Saudi Printing and Packaging, which began tumbling on Thursday as a bubble in the stock burst, swung wildly. It plunged a further 10 percent in early trade but closed 10 percent higher.

The Dubai stock index, which sank 3 percent on Sunday, rebounded 1.0 percent. Emaar Properties added 1.5 percent.

But healthcare and education investment company Amanat Holdings, which listed last November, fell 0.9 percent after reporting a net profit of 7 million dirhams ($1.9 million) for the nine months through September.

Abu Dhabi's index rose 0.8 percent as Aldar Properties, the most heavily traded stock, rebounded 2.6 percent.

Qatar fell 0.5 percent, however, as petrochemical producer Industries Qatar slid 1.3 percent.

Arab News