Abu Dhabi, (Business News Report)|| The Gulf stock exchanges fell during the past few days, due to the impact of the significant decline in the global financial markets after the high inflation rates.
A report by Kamco Invest for investments in Kuwait said that the Gulf stock exchanges lost $203.7 billion in market value during the past two weeks, affected by the decline in global markets due to the wave of inflation.
The report indicated that the losses of the market value of the Gulf stock exchanges amounted to $78.6 billion this week, while the loss in the previous week was $125.1 billion.
The Saudi Stock Exchange recorded the biggest loss in the Gulf, as its market value lost about $166.7 billion within two weeks, followed by the Qatar Stock Exchange with a loss of $12.1 billion, and then the Kuwait Stock Exchange, which lost $10.9 billion during the same period.
As for the trading session at the end of the week, six Gulf stock exchanges ended Thursday’s trading with a decline in their indices.
The Saudi Stock Exchange closed down by 2.24%, while the Qatar Stock Exchange index decreased by 2.23%, Bahrain by 2.09%, Dubai by 1.37% and Abu Dhabi by 0.62%, while the Muscat Stock Exchange index rose slightly by 0.01%.
The stock exchanges of the Gulf countries declined during the past two weeks, a reflection of investors’ concern about the acceleration of the rise in inflation, which will lead to a significant increase in interest rates and threaten global economic growth.
In a separate context, Wall Street closed sharply lower on Thursday, and Target lost about a quarter of the market value of its shares, highlighting concern about the US economy after retail companies became the latest victim of price jumps.
The benchmark S&P 500 index posted its worst one-day loss since June 2020.
Shares of Target Inc plunged 25% after its first-quarter profit halved. This is the biggest loss for its shares since the crash of Black Monday on October 19, 1987.
Target’s results came a day after rival Walmart cut its earnings forecast.
Shares of major interest rate-sensitive growth companies continued the series of losses and pushed the Standard & Poor’s 500 and Nasdaq indexes lower. Shares of Tesla, Nvidia, Amazon, Apple and Microsoft closed sharply lower.
All eleven sectors listed in the Standard & Poor’s 500 declined, led by the shares of consumer products companies.
Financial markets have recently been hit by rising inflation, the war in Ukraine, supply chain problems, pandemic-related shutdowns in China and monetary tightening from central banks, which raises concerns about a global economic slowdown.