MIDEAST STOCKS-Saudi hits 11-month low as most Gulf markets fall - Reuters:
Saudi Arabia's stock index fell sharply
on Tuesday with all its banking shares declining ahead of
third-quarter results as expectations remain muted, while most
major Gulf markets traded in negative territory.
In Saudi Arabia, the benchmark index declined 1.6%,
reaching its lowest since November 2018. Riyad Bank
lost 4% and National Commercial Bank (NCB) dropped
1.6%.
Third-quarter results at Saudi banks are expected to be hit
by two consecutive rate cuts by the Saudi central bank in August
and September, which analysts say will squeeze their revenue.
"In general, expectations from third quarter results are
muted. Rate cuts are spread negative since a large chunk of
their deposits are cost-free anyways & loan growth is not
exciting," said Vrajesh Bhandari, senior portfolio manager at Al
Mal Capital.
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