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Analysis: Persian Gulf stock exchanges are waiting for the development of trade disputes

Window to the world

Mubasher: The development of the US-China trade war has prompted Gulf capital investors to maintain liquidity, lowering trading values ​​and pushing indices to stay below significant levels, analysts say..

Chinese trade minister Zhong Shan admitted at a press conference on Sunday that Chinese companies are facing many difficulties because of trade disputes with the United States..

The continuation of the world and the region are waiting for the results of public talks between the United States and China in Washington on October 10-11.

Talks are taking place under pressure from the US and some reports that they are considering canceling Chinese companies on US stock exchanges. At the end of last week, press reports reported that the United States is considering restrictions to limit US investment in China, which would deepen the trade dispute between the two largest economies in the world..

China warns against trade conflicts, saying that it will lead the world to economic recession. With the development of Washington-Beijing trade, losses dominated global markets at the end of trade last Friday.

CEO of Thank Financial Advisors told Mubasher: "Today's Gulf markets will succumb to global market trends that are starting to decline, as we saw at the beginning of Asian markets after recent statements by the Chinese trade minister regarding trade disputes..

The trade war will remain a compass at the beginning of the new month, as several factors influence the stock market investors in the region, especially Fadi Al-Ghatis..

He explained that it is expected that commercial war will develop in the coming period, which will affect the level of liquidity in the Gulf markets, especially the negative trends for foreigners.

According to press reports, the creator of Airbus and Pyongyang threatens to impose duties on luxury products, including wine and cheese. This is because industrial companies in the EU have to face US steel and aluminum tariffs.

"Saudi Arabia "is different

Technical analyst and member of the Economic Council Scientific Committee that the Gulf markets are selling at an important stage, because if the technical levels are exceeded, they will increase momentum, but they need a high level of liquidity to exceed these levels.

Mona Mustafa emphasized that what is currently preventing the Gulf markets from exceeding these levels is a commercial dispute, because it affects many industries in the region if it does so..

Regarding the Saudi market, Mona Mustafa said that the Saudi market is currently technically different from the Gulf markets because continuing consolidation above 8,000 points will increase investors' appetite for risk, especially foreign ownership, which has increased high interest rates recently. in combination with the improvement of emerging markets. Futsi Russell".

And in the session "Tadawul On Monday, after the end of the national holiday, the Saudi market was on the border of the fourth stage of the Saudi stock exchange, joining the FTSE emerging market index..

Mona Mustafa suggested that the Saudi market will see more positive signals after stimuli, especially in the industry and tourism sectors. Recently, the Kingdom has dismissed foreign workers in the industrial sector, one of the main sectors of the economy focused on development, from fees for five years..

Last Friday Saudi Arabia launched a new tourist visa, introducing the Kingdom to a new era, opening the door for visitors. Citizens of any country can apply for a tourist visa..

Mona Mustafa said the success of the tourism sector would extend its impact to other sectors, including communications, insurance and retail. At the end of yesterday's session, CERA was the second best-selling on the Saudi market (an 8 percent increase) and ground services by around 4 And shares in the hotel sector.

She noted that the approach to the announcement of financial results will restore some pace in the markets, indicating that technically the overall level of index support is 7880 points, and the next resistance target at 8260 points.


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