Mideast Stocks Drop Despite $47 Billion of Central Bank Aid - Bloomberg:
Most equity markets in the Middle East fell on Sunday, despite efforts by central banks across the region to support economies from shocks related to the coronavirus and plunging oil prices.
Dubai’s main index fell 3.4% by the close and Abu Dhabi’s dropped 1.9%, even after the United Arab Emirates announced 100 billion dirhams ($27.2 billion) of monetary stimulus over the weekend. Egyptian stocks had their worst day since 2012, weakening more than 9%. Gauges in Saudi Arabia and Israel also traded lower.
The U.A.E.’s Targeted Economic Support Scheme includes 50 billion dirhams of zero-interest, collateralized loans for banks. In addition, lenders will be allowed to reduce their capital buffers, which will inject 50 billion dirhams of liquidity.
“I remain focused on the demand side,” Ali Taqi, the head of equities at Rasmala Investment Bank in Dubai, said in an interview with Bloomberg TV. “How are you going to stimulate demand? Restaurants, cafes are a lot emptier now. Having a relief is good, but business is much more concerned with the decline in footfall. It will take some time for people to feel comfortable again.”
Most equity markets in the Middle East fell on Sunday, despite efforts by central banks across the region to support economies from shocks related to the coronavirus and plunging oil prices.
Dubai’s main index fell 3.4% by the close and Abu Dhabi’s dropped 1.9%, even after the United Arab Emirates announced 100 billion dirhams ($27.2 billion) of monetary stimulus over the weekend. Egyptian stocks had their worst day since 2012, weakening more than 9%. Gauges in Saudi Arabia and Israel also traded lower.
The U.A.E.’s Targeted Economic Support Scheme includes 50 billion dirhams of zero-interest, collateralized loans for banks. In addition, lenders will be allowed to reduce their capital buffers, which will inject 50 billion dirhams of liquidity.
“I remain focused on the demand side,” Ali Taqi, the head of equities at Rasmala Investment Bank in Dubai, said in an interview with Bloomberg TV. “How are you going to stimulate demand? Restaurants, cafes are a lot emptier now. Having a relief is good, but business is much more concerned with the decline in footfall. It will take some time for people to feel comfortable again.”
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