MIDEAST STOCKS-Weighed down by bank stocks, Saudi market dips after U.S. rate cut - Reuters:
Saudi Arabian equities declined on Sunday, weighed down by
banking shares, in line with major markets on Friday after the U.S. Federal
Reserve cut interest rates, which was followed by rate cuts by most Gulf central
banks.
"Global factors such as Fed's rate cut and trade concerns post Trump's
tweets on possible 10% tariff on additional goods are likely the reasons [behind
the weakness]," said Pritish K. Devassy, head of equity research at Al Rajhi
Capital.
"The Fed’s cut affects Saudi banks as net interest margins decline while
more tariffs imply global demand weakness which is negative for petrochemical
prices. Given these two sectors constitute a large chunk of the Saudi Index, the
indices have declined," Devassy said.
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